The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
The 5 Best Ways to Spend a Windfall
One in three Americans who receive a windfall—such as money from an inheritance or an investment paying off big—blow it within two years. A sudden windfall might seem like fun money, but it’s best to give serious thought to how you’ll use it. What are the best ways to spend a windfall?
Use this advice to put the money to good use and take the amount you’re receiving into consideration:
Pay off credit card debt
It’s smart to pay off accumulated credit card debt. But, experts recommend an additional step: Figure out how to avoid building up “new” debts. Talk with or email a loan officer at Mid Oregon for help setting up a spending plan.
Pay off student loans
Generally the interest on student loans is low, it might be tax-deductible, and the payment schedule is flexible. Consider putting your windfall to better use such as paying off higher rate credit card debt, and consider moving any balance to a lower rate Mid Oregon Visa card.
Pay off your mortgage
Again, your mortgage is a low-rate, tax-deductible debt. Paying it off locks up your money in your house—an investment that usually requires time and money to sell. You might be better off putting your windfall into liquid investments that earn a higher rate of interest.
Establish an emergency saving account
This account should be used to cover emergencies such as medical bills or job loss. The general advice is to set aside enough reserves to cover three to six months of living expenses, but you may even want more.
Make sure you’re saving enough for retirement
If you haven’t been maxing out your 401(k) at work, start now. If you’re already putting the maximum into tax-deferred vehicles, consider opening a Mid Oregon Credit Union Roth IRA (individual retirement account), if you meet the income restrictions. A Roth IRA isn’t tax-deferred at the front end, but it’s tax-free when you withdraw the money—both contributions and earnings.
Work With Someone You Trust
If you still have money left, work with an adviser who knows you, your goals, your timetable, and your risk tolerance—not just someone who sells investments.
Then, splurge! A little.
Experts say it’s fine to go ahead and spend a little of your windfall for fun. Realize though the difference of things that will make your life better in the long term and those that are just for fun right now. Balance the two.
Mid Oregon can help! Stop by or call today at (541) 382-1795
Celebrating 12 Years of Adopt-a-Bear!
Adopt-a-Bear at Mid Oregon
Mid Oregon Credit Union is happy to announce our 12th year in support of Healthy Beginnings Adopt-a-Bear campaign. In 2004, our CEO, Bill Anderson, and Healthy Beginnings Executive Director, Holly Remer provided a perfect solution to a fundraising dilemma with a creative campaign called “Adopt-a-Bear”. The colorful “teddy bear” became the vehicle to expand community awareness and provide needed revenue.
Our staff and members “adopt” bears with their donations to Healthy Beginnings. The die-cut bears become the “wallpaper” at all their branches in Bend, Redmond, Madras, Prineville, and La Pine during the weeks of April 4 through 22, 2016. The campaign efforts have raised $19,644 to date.
Adopt-a-Bear for Healthy Beginnings!
Healthy Beginnings provides no cost health and developmental screenings to preschool children in our communities ensuring they are ready to learn when they enter kindergarten. The state has identified universal community screenings as a best practice. They provide consistent, reliable, valid, evidence based screening for young children – but there is no state funding. For the past 21 years, Healthy Beginnings relies on community donations to keep their screenings free for all families who utilize their services. Healthy Beginnings serves over 700 children and families each year in Bend, Redmond, La Pine, Madras, Prineville, Sisters and Sunriver.
Community residents may make a donation to Healthy Beginnings at any Mid Oregon Credit Union location, or you can call 541-382-1795. For information about child screenings to go www.MyHB.org.
Help Children and Yourself
If you can’t make it in during the week, on Saturday April 16 we have a special opportunity! We offer free personal shredding to the community at four of our branch locations. After you drop off your documents, you can watch them being shred and make a donation to Healthy Beginnings at the same time! We will be at our Olney & 2nd Street location in Bend, and at our Madras, Redmond and Prineville branches for your convenience. Our partner Secure Shred will there to do the document dirty work. Stay tuned for more details.
We have lots of opportunities to help. Please consider a donation at one of our nearby locations starting Monday, April 4.
Tax Time is Not about Luck
Don’t let tax time be a mystery that’s out of your control. As your circumstances and tax rules change, review and tweak your tax situation:
Review your withholdings
If you’re employed, at some point you used form W-4 to tell your employer how much tax to withhold from your paycheck. When filling out a W-4, the more allowances you claim, the bigger your paycheck will be, since fewer taxes are deducted. But what you don’t pay during the year, you’ll owe when you file your tax returns.
Conversely, if you have too much tax withheld, you’re giving the government a free loan. You’ll get a refund— without interest—at tax time.
Fortunately, you can Google the IRS withholding calculator and use it to make sure you’re on the right path. If you decide you want to make changes, complete and submit a new W-4 to your employer.
Pay your estimated taxes
If you expect to owe more than $1,000 in taxes, you might need to pay estimated taxes four times a year, usually the 15th of January, April, June, and September. If you don’t make those payments, you could face penalties.
Meet the Affordable Care Act requirements
The Affordable Care Act requires everyone to have health insurance. If you are purchasing your own health insurance plan from the marketplace and are receiving advance payments of premiums, you must keep the marketplace updated with life changes that would affect those payments.
If the marketplace decides you are receiving more assistance than needed, you will have to pay it back when you file your tax return.
At tax time, there’s no such thing as luck. Plan ahead, talk with your tax adviser, and prevent surprises on your next tax return.