As economic conditions improve, unemployment rates are showing a decline. According to the latest data from the Bureau of Labor in November 2023, the unemployment rate reached 3.7 percent. When you find yourself returning to work after unemployment, it can feel like emerging from a challenging period. There are essential details to address before fully embracing the return to work. Here are vital steps to consider as you transition back into the workplace after an extended unemployment period. Closing Unemployment Benefits When you receive unemployment compensation during your period of unemployment, it’s crucial to inform your state authority about your return to work. Each state has specific policies and procedures for individuals rejoining the workforce, and failing to provide this information promptly may result in penalties or fines. Reestablishing a Daily Routine Having been away from the workplace, whether returning to a familiar office or joining a new organization, your work environment may have changed due to various considerations. Establishing a daily routine before you officially start can be beneficial: Building these habits before your return can make the transition smoother, considering that others may not adjust as seamlessly. Managing Stress at Work In the current context, stress levels may be high for various reasons. As you re-enter the workforce, it’s essential to anticipate and manage stress for yourself and others. Here are some tips: Minor adjustments can significantly impact stress levels. By being mindful of your well-being and that of your colleagues, you contribute to a more positive work environment. In conclusion, whether you approach your return to work with excitement or apprehension, addressing these considerations beforehand can facilitate a smoother transition. Focus on managing unemployment benefits, easing into a work routine, and minimizing stress for yourself and those around you, aiming for a thriving and harmonious return to work.

Employed Again? Do These Things First

View Resource Employed Again? Do These Things First
Technology and online security see continuous enhancements each year, but unfortunately, not those upgrades have not been enough to protect databases from being breached by hackers. As a result, identity theft remains a serious issue in the United States. How serious? According to the Identity Theft Resource Center, more than 233.9 million records were exposed to identity theft in 2023, arising from over 2,116 total data breaches. The data breach analysis reports 733 compromises for Q3 2023. The financial services sector accounted for 27.8 percent of data breaches, healthcare and hospitality were 16.8 percent, the government had 3.5 percent and education with 5.7 percent. How to Know if Your Data Has Been Compromised In most cases, a company will notify you via email or postal mail after discovering a data breach. They will likely tell you the stolen information, such as your name, email address, username, password, mailing address, Social Security number, and financial account numbers. Another way you may discover your data was in a breach is if you notice fraudulent activity on your accounts. For example, you may see a credit or debit card charge you did not make, or you may get a phone call or piece of mail about an account you did not open. The thief may have obtained your information through a data breach where the company has failed to notify you or where the breach has gone unnoticed. Steps to Take to Protect Your Identity After a Data Breach
  1. Change your password if that was one of the pieces of information involved in the data breach. Also, if you use the same or a similar password for other things, change those passwords as well.
  2. Sign up for the free credit monitoring service offered by the breached company, if applicable. This service will likely check your credit report regularly and notify you immediately regarding any new information that appears. However, do not let the credit monitoring service give you a false sense of security. You should still take other steps to protect yourself and your identity.
  3. Place a fraud alert on your credit report by contacting one of the three credit bureaus: Equifax, Experian, or TransUnion. This alert will automatically transfer to the other two bureaus as well. When there is an alert on your credit report, creditors are supposed to contact you directly before issuing credit in your name.
  4. Review your credit reports for unusual activity. In particular, focus on the section that lists credit inquiries initiated by you. If you see something here that you do not recognize, this can indicate that someone has attempted to apply for credit using your name and Social Security number. Also, look at the section listing active accounts. If there is an account there that you did not open, contact the financial institution that manages the account and the credit bureau that provided the report to tell them it is fraudulent.
  5. Consider issuing a security freeze on your credit reports if you found evidence that someone is actively trying to open accounts using your information. The security freeze prevents new accounts from being opened unless you lift the freeze for a specific financial institution and a specific time frame.
  6. Protect existing accounts by monitoring your monthly account statements and checking all activity to ensure you initiated it. Monitoring your account is especially important if you know your credit card number, debit card number, or bank account number was compromised. If you notice any unusual activity on your statements, notify the financial institution that manages the account immediately. They may issue a new account number for you.
  7. Be vigilant about requests for personal information. Do not give your personal information if you receive a call or email from someone who claims to be with one of your financial institutions. Instead, call your financial institution directly through the number listed on your account statements or by typing in their website address. You should only reveal personal information if you have initiated the contact and are sure you are not talking to someone trying to defraud you.

If You’re a Victim of a Data Breach

View Resource If You’re a Victim of a Data Breach
As a parent of a new teen driver, having your teen get their license is enough to cause you to break into a cold hard sweat. Not only do you now have to worry about the safety of your teen behind the wheel, but your auto insurance premiums could go through the roof. Why is Teen Insurance so Expensive? Teens cost more to insure for good reason. The rates are typically higher for teens than other drivers because they pose a more significant risk of accidents than experienced drivers. Teen drivers are also more likely than the average driver to get tickets. The National Highway Traffic Safety Administration (NHTSA) says that the leading cause of death for teens is motor vehicle crashes and make up more than a third of all deaths of teens between the ages of 16 through 19. According to the CDC, in 2020, 2,800 drivers between the ages of 13 to 19 were killed in motor vehicle crashes. In addition, male drivers have over three times the death rate compared to female drivers of the same age. According to CarInsurance.com, your insurance premium will increase, on average, by $3,726 annually when adding a teen to your policy. In some states, the increase could be as high as 150 percent. What are Parents Required to Do? Most insurance companies will require that all licensed members of your home be added to your policy, regardless of whether they are driving your vehicle or not. You do not have to add teens if they only have a learner’s permit. That does not mean that you do not have to notify your insurance agent when your teen gets their learners permit, you do, but there should be no charges to your policy since your teen is not listed. Once your teenager gets his license, you have to either take out a separate policy or add them to your own. You also need to contact your insurer to ask about their rules if you are divorced and only have custody part-time. Typically, the parent who has primary custody adds the teenager. That is not always the case, however. If you have multiple vehicles, you may be able to save money on premiums by limiting your teen to driving only a single car. However, to avoid paying a premium for your teen on other vehicles, you will need a named exclusion. That is where you and your insurance company agree, through an endorsement to your policy, that your teen does not have coverage on those vehicles. As a result, your teen does not get coverage for any claim caused by them either. How Can I Add a Teen Most Cost Effectively? It is often less expensive to add a teen to an existing policy instead of buying a separate one, which most parents do. However, there are other things you can do to reduce the cost of adding a teen driver to your insurance. It is also better to add your teenager to your current insurance while sharing a car rather than purchasing them a new car. Take Advantage of Discounts Many insurance providers provide discounts. For example, the Good Student Discount is one that insurance providers offer to students who maintain good grades (B average or higher). Others offer programs, such as educational videos, online safety courses, contracts between parents and teens, and driving logs to foster safe driving habits. Some insurance companies subsidize the costs of electronic gadgets, such as GPS tracking devices, which parents can install in their cars to monitor their teen drivers. Then they offer discounts to the policyholders whose teenagers use the gadgets. That is part of a concerted effort to reduce teen-involved crashes. Drop Collision and Comprehensive Coverage You can save some money on your policy by dropping comprehensive and collision coverage on older cars that are not worth that much more than the deductible itself. Chances are, with an older car, you will pay more in the premiums than you would receive from the insurance company if your vehicle is totaled. You can research Kelley Blue Book to see your car’s value. Get a Safe Car Not only will you be able to sleep better knowing your teen is driving a safe car, but your premiums will be cheaper as well. Take Advantage of Bundling You will likely receive a multi-policy discount if you have both a homeowners and auto insurance policy with the same insurance company. By adding an umbrella policy, you can even get another discount, which offers additional liability coverage beyond the limits of your auto insurance. Consider ‘Pay-as-you-go’ or Usage-Based Insurance For this insurance policy, they install a device that monitors the driver’s driving behavior. When drivers display good driving habits, they receive a financial reward. That’s a positive way to keep an eye on your teen’s driving and save some money as well. The bottom line is this: there are always ways for you to save money on your insurance premiums while keeping your teen safe at the same time. Give your insurance company a call to get a quote and discuss the number of options you can implement to save on adding your teenager to your auto insurance policy. Of course, your main priority is to keep your teen safe while they are behind the wheel; saving money on your auto insurance is a bonus.

Auto Insurance and Teen Drivers

View Resource Auto Insurance and Teen Drivers
Most parents worry about their children as they grow up; however, you’d think that would stop once they reach adulthood. Parents always look to set their children up for a successful future. They might be helping out with their first car, paying for higher education, or assisting them in purchasing their first home. Parents may also choose to open and operate a guardian IRA, or custodial IRA, for a child or someone who is disabled. Understanding a Custodial IRA Parents or legal guardians are responsible for managing a custodial IRA for their child or disabled adult. Typically, this will include the guardian signing all the legal paperwork since the other person cannot. The parent or guardian usually uses a custodial IRA to assist with setting their child up for financial success once they reach retirement age. Even though a legal guardian manages the account, the child or disabled person still owns it. Then, once the child reaches the age of 18 or 21, depending on the state, they’ll have the account transferred to them for proper handling. Disabled individuals would receive complete ownership once they can handle their finances. There are two common types of custodial IRA accounts – Traditional and Roth. Custodial IRA Account Benefits One of the most important things we can do for our children is to teach them financial responsibility at a young age. Maintaining funds and establishing savings will help them apply those skills to their future finances. People typically do not consider retirement funds until they reach their late 20s to 30s. However, by creating a custodial IRA for your kid, you’ll be able to kickstart their retirement savings and help them prepare for the future. You can withdraw money from a Traditional IRA or Roth IRA anytime. The main difference between the two accounts is how the funds are affected by taxes. A Traditional IRA will face tax penalties for an early withdrawal, while a Roth IRA does not. The ability to withdraw your funds from a Roth IRA without penalty will only assist with managing emergencies, attending college, or other money-related concerns. Using a Custodial IRA Account The first step when setting up a custodial IRA is choosing the right financial institution. Next, you’ll need to provide general information for whomever you’re opening the account with, including their social security number, employment information, annual income, and banking information. The account is typically set up in the child’s name and then funded by taxable earnings regardless of age. The funds can come from babysitting, dog walking, or a W-2 job once they reach legal age. However, the maximum limit for 2023 is $7,000. Takeaway A Roth or Traditional custodial IRA is an excellent option for setting your child up for a successful retirement. However, remember the main differences between the two types of accounts. In addition, educating your children on the importance of saving money will only help them in the future when it comes to managing their finances.

What Is a Custodial IRA?

View Resource What Is a Custodial IRA?
Avoiding Tax Penalties Mistakes are common when filing and paying your taxes. In such a case, it’s best to know what types of penalties you can incur and how to calculate them to stay better prepared. What’s a Tax Penalty? Your income tax returns are filed directly with the Internal Revenue Service (IRS). However, you can face a tax penalty if you have underpaid your quarterly taxes, missed a deadline while filing those taxes, or have had a check used to make tax payments bounce. In addition, you can still get a penalty even if the IRS owes you a tax refund. The IRS will always send a notice if you incur a tax penalty. Typically, they calculate the tax penalty based on the following equation: Total Tax – Refundable Credits = Total Tax on Return Penalties are calculated based on: Types of Tax Penalties You can incur a penalty for a variety of reasons. Failure to file your income tax return: The IRS does offer an extension for those who fail to file their tax return before the due date. However, you will incur a penalty if you fail to file during the extension period. The incurred penalty charges 5% of the tax due every month or part thereof, exceeding the time for return filing. Eventually, the amount caps at 25% (5 months) of your balance. However, if you file your return 60 days late, you’ll incur a penalty of $435 or 100% of the tax owed, whichever is less for returns due after 1/1/2023. To avoid tax penalties, file your tax return before the due date (or the extended period). When you’re expecting a return, you will not incur a penalty. However, when you’re getting a return, file it within three years of the due date or risk losing the refund. Failure to pay the due taxes: To avoid penalty, you’ll need to pay all your taxes before your return’s due date. If you have unpaid taxes before the stipulated date, you’ll incur a penalty of 0.5% of the tax payable per month that maxes out at 25% of the tax due. Although both penalties can occur in the same month, the penalty for failing to file your return decreases by the penalty for failing to pay your taxes. The maximum combined penalty caps out at 5% per month. If you want to avoid the penalties, pay all your taxes before their due date. Failure to pay the estimated tax: Since the IRS follows a “pay-as-you-go” system, typically, you pay your taxes throughout the year as you receive income. You’ll incur a penalty if you owe more than $1,000 in taxes. To avoid a tax penalty, you need to pay quarterly estimated taxes, typically due on: Calculating your taxes each year can be challenging. However, the IRS does offer a ‘safe harbor’ method when calculating your estimated payments. You can avoid an underpayment penalty if: Dishonored Checks: If the check you sent to the IRS gets returned, they will charge a 2% penalty of the total check amount, maxing out at $1,250. Therefore, the fine is $25 or the total amount of the check, whichever is less. Avoiding Tax Penalties You can easily avoid tax penalties by ensuring that you pay all of last year’s taxes. Try following the steps below to prevent future tax penalties: Takeaway Filing returns and paying your taxes tend to be a tedious process. If you’re looking to avoid penalties altogether, ensure you get all the information together and pay your taxes on time.

Avoiding Tax Penalties

View Resource Avoiding Tax Penalties
If you’re contemplating selling products online for the first time, there are some things to consider and decisions to be made First, you have to decide whether you want to set up your own online business or work with a third party. Setting Up Your Own Online Business Domain Name and Hosting The first step to take when setting up your own online business is to choose a domain name and hosting. Your domain name should be strong and memorable. It will enable your visitors to find your online store more efficiently, remember it, and enable you to build your brand. Regarding hosting, be sure to consider your store’s long-term goals before deciding on a provider, as there are many web hosting providers offering a variety of features. Online Merchant Account Since customers who shop online will often use credit cards to pay for their purchases, setting up an online merchant account is essential. That will allow you to take and process payments and have the money transferred directly to your business bank account. In addition, you will most likely need to work with a ‘payment gateway’ or payment service provider for security reasons. PayPal is another payment option that will allow your customers to use their credit cards and other forms of payment if shopping internationally. Your E-Commerce Storefront There are several storefronts to choose from depending on your particular needs. There are: Your Products Since your customers are not in a physical store where they can touch your products, it behooves you to replicate this experience as much as you can. You can do this by providing many details and descriptions of your products, including dimensions and weight. Include a zoom feature to enable customers a close-up look at your products. Also, having an online video showcasing and demonstrating the product is ideal. SSL Certificate By obtaining an SSL Certificate, you ensure to your customers that shopping at your e-commerce store is secure. That not only keeps your customer’s information but also provides your small business with credibility. Third Party Selling Opportunities If you are looking to sell products online without setting up an e-commerce website yourself, working with third parties might be best for you. These sites allow individuals and businesses to sell their products and earn commissions. However, there are some necessary things you want to follow first to make the most of this option. First, you want to determine what you wish to sell. You want to find unique products and offer an excellent market opportunity. Next, you will want to strategize as there is so much competition. You have so many options at your disposal, including big names like Amazon and eBay, where you can set up shop. Because you have so many options, you should research them and find a trustworthy provider. Not all providers are the same. You want to go with one that is easy to work with, will offer reliable e-commerce solutions for selling your products, provide professional-looking websites, and is user-friendly. In the end, you want to leave your customers with a fantastic virtual shopping experience. Since they do not get the instant gratification of exiting a brick-and-mortar store with a purchase in hand, you want to replace that by providing a great online shopping experience.

Selling Your Products Online

View Resource Selling Your Products Online
An online presence is a must for any business. According to Statista’s e-commerce industry report, they estimate that online sales in the U.S. will consistently grow between now and 2028. Statista forecast expects U.S. e-commerce sales to reach over $1.524 trillion by 2028. Those figures represent just the online sales of goods. The numbers do not include the sale of services or local transactions where initial contact or comparison shopping began over the Internet. The bottom line is that if you are not on the web, you are missing out on a significant market for your goods and services. Many small businesses put off establishing themselves online because they are confused by Internet marketing concepts. Although the medium is different, Internet marketing concepts stay the same. To make the most of your online shop, you need to learn what makes the web different and make the most of its strengths for your business. Here is a look at five basics you need to understand. Website A website that is appealing and engaging is step number one. Like a clean, well-lit, and welcoming storefront, a well-designed site attracts visitors. If customers like what they see and can quickly get their questions answered, they will probably buy from you. If you already have a website but are attracting few paying customers, have a professional review your site. Evaluate your content. Does it answer questions? Is it exciting and practical? Ask friends and visitors how easy it is to navigate through your site. If it is confusing, visitors will leave. Consider utilizing a usability testing firm to provide you with feedback on the effectiveness of your website. Do you use attractive and professional-looking graphics, photos, and even video? They are essential attention-getters because you only have a second or two to convince visitors to stay on your site longer. Search Engine Optimization Usually called SEO, search engine optimization means appealing to the algorithms used by the different search engines, like Google, Bing, and Yahoo. Typically, most of your search engine traffic will come from the behemoth Google. Your goal is to get on the first page of the search engine results and preferably in the top five. You do this by consistently updating your content with valuable, engaging copy. For example, use keywords in your website text that matches what you believe to be potential customers’ most popular search terms. Also, take advantage of social media and use quality backlinks on your site. Email Marketing Using email efficiently is the best way to stay in touch with prospects and customers. Try providing them with helpful content and offer them sales opportunities periodically but not too often. Over time, you will build brand recognition and customer loyalty. Online, everyone complains of overstuffed inboxes. The way to get people to look forward to your emails is to send just a few emails but pack them with genuinely helpful advice and excellent deals tailored to their needs. If you follow this formula, your emails will get read instead of immediately deleted. Social Media Due to the many social media platforms, knowing where to make your mark can be confusing. You are better off choosing two or three and consistently updating your content, and regularly engaging with followers. Facebook, Twitter, Instagram, TikTok, Pinterest, and LinkedIn are the big ones. However, there are many other smaller spots on the net where prospects gather. Find out your target audience and set up an active, engaging, and entertaining presence. Content Marketing You cannot confine yourself to a blog or website copy. Content marketing means spreading the word about your brand, products, and services using every type of communication method available on the web. That certainly includes your blog, website copy, email, and social media posts. Go beyond those essentials with ebooks, whitepapers, press releases, podcasts, infographics, photos, graphics of all types, and especially videos. There is a reason that more than 75% of all marketers now use video content on their sites, and YouTube has more than a billion visitors each month. Learn which types of content work best for your audience and do more of it. Then keep it updated and fresh. You need to be online. The days when it was optional are long over. If you are not online now, start small with a website and gradually add all the elements discussed. It is a wise investment in your business’s health, longevity, and profitability.

Internet Marketing Basics

View Resource Internet Marketing Basics
Being underwater on your mortgage does not refer to having a flooded home. Instead, it means that your current debt on the house is higher than the current value of your home. Unfortunately, this situation occurs far more often than anyone wants to admit. In fact, according to Irvine, California-based ATTOM Data Solutions, in the second quarter of 2023, less than 3 percent of American homes had a combined estimated balance of loans that were at least 25 percent more than the market value. Fortunately, those numbers have fallen dramatically in the last five years — though that offers little comfort if you are one of the nearly 5.2 million homeowners currently facing a negative equity situation in your home’s value. A condition, as it happens, that makes refinancing or selling your home extremely difficult. These are a few options to consider if you find yourself in this situation. Stay Put One option to consider is to remain in your home rather than attempting to sell it for a probable loss. Even if you face work-related relocation, you could keep your home and consider using it as a rental property instead. Why is staying put attractive? Like many other things in the world today, home values are cyclical. Areas that may be experiencing a slow economic state of affairs today will likely pick up and, provided the home is in a stable state of repair, improve in value in time. If there is no critical reason to leave your home, consider remaining in your home until the market corrects itself and home values improve. You may even consider making improvements to your home during this time that will help to increase its value once you decide to put it on the market. Selling Your Home For some people, the only option is to sell your home. For example, you may be facing a relocation and need to get out of the financial obligation your home represents. Alternatively, you could be at risk of foreclosure and trying to salvage your credit. Some options are available that may allow you to sell your home even if it is underwater. However, they are not guaranteed and may come at a higher price than you want to pay. While none of these are entirely attractive options, they are options to consider and maybe the best option for you, depending on your tax and property situation. Foreclosure Sometimes foreclosure becomes the only option available to you. When this occurs, the lender retakes control of your home, and you get evicted. This process can take a huge emotional toll on you and your family, as well as a financial toll on your credit situation for the next seven years. In addition, the foreclosure process allows the lender to sell your home as quickly as possible to another buyer to help recover their losses. If you can avoid this process, it is best to do so from an emotional perspective. However, it is sometimes an economic necessity. Declaring Bankruptcy Bankruptcy is another option to consider when facing an underwater home. There are two types of bankruptcy you may qualify for in this situation: Bankruptcy has a lasting effect on your credit score and can be an exhausting process both mentally and emotionally, not to mention expensive. It’s not easy knowing the right move to make when dealing with an underwater mortgage, but understanding your options helps.

Selling a Home That is Financially Underwater

View Resource Selling a Home That is Financially Underwater
The main attraction of a certificate of deposit (CD) is its fixed interest rate. Opening a CD in a bank or credit union allows you to lock in an interest rate that remains the same throughout the CD’s complete term, which can be months or years. Standard CDs focus on locking in that interest rate for the term of the CD. However, bump-up and step-up CDs are a new option in which the interest rate increases over time, following the changes in the market.

What are Bump-Up and Step-Up CDs?

Bump-up and step-up CDs allow for increases in the interest rate during the CD’s term. Bump-up CDs allow you to choose when you get a boost, while the bank or credit union chooses the increase in advance for a step-up CD.

Bump-up CDs

Unlike a traditional CD’s fixed interest rate, a bump-up CD will allow a one-time increase in the interest rate, which will lock in until the maturity period ends. A CD with a more extended maturity period, like four years, may allow a second increase in its interest rate. Bump-up CDs require the deposit holder to request the rate adjustment. For instance, a bank or credit union can offer a CD with a 24-month term and one bump-up option. For example, if the current interest rate is 2 percent and will increase to 2.9 percent in seven months. The seventh month will allow you to bump your interest rate to 2.9 percent to get increased returns for the remaining 17 months. Whenever the rates decline again, you’ll be able to enjoy the higher interest rate throughout the remainder of the maturity period.

Step-up CDs

Step-up CDs have interest rates that increase in phases over the maturity period. For example, your certificate of deposit can have an interest rate of 0.5 percent and have a schedule to increase it by 0.1 percent every six months for four years. That way, you’ll have a CD with a 1.1 percent by the end of its maturity period.

Advantages and Disadvantages of Bump-Up CDs

Advantages of Bump-up CDs:

Disadvantages of Bump-up CDs:

Advantages and Disadvantages of Step-Up CDs

Advantages of Step-up CDs:

Disadvantages of Step-up CDs:

Takeaway

In a growing market, a traditional CD with a fixed interest will make you lose out on any potential increase in interest rates. In contrast, getting a bump-up or step-up CD will allow you to increase your interest rate and get better returns after the CD’s maturity period.

Bump-Up CDs vs. Step-Up CDs

View Resource Bump-Up CDs vs. Step-Up CDs
ETFs, or exchange-traded funds, are an excellent way of investing in the securities markets. ETFs include a basket of securities to trade on the stock exchange, like mutual funds. They are simple to understand and can generate significant returns at a minimal expense.

What is an ETF?

Exchange-traded funds, or ETFs, are pooled investment securities traded on a stock exchange. An investor can buy a portion or shares of an ETF, and the fund fulfills the ETF’s objective. Like stocks, investors trade ETFs on major stock exchanges, like NASDAQ and NYSE. In addition, ETFs can contain all types of investments, like stocks, bonds, and commodities. Moreover, they can offer domestic or international shares.

Types of ETFs

Here are some of the types of ETFs currently available on the market.

Understanding Risks and Returns

An ETF is a marketable security that you can buy and sell daily. Whenever an investor purchases shares in an ETF, they’ll have fewer risks as the investment spreads over a collection of stocks. To improve returns and minimize risks, investors must consider the following while investing in ETFs:

Benefits and Limitations

Investing in ETFs can have the following benefits and limitations:

Benefits:

Limitations:

Takeaway

ETFs allow you to diversify your investments without having to purchase individual stocks. However, they may come with higher costs and potentially lower dividends than high-yielding stocks.

Investing in ETFs (Exchange-Traded Funds)

View Resource Investing in ETFs (Exchange-Traded Funds)