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.
Define Your Retirement Before You Set the Date
As you approach retirement, do you plan to work longer than your full retirement age? Before you decide on the date of your retirement, take some time to define the look of your retirement. Think about the intangible benefits you get from work, such as routine, camaraderie, a sense of fulfillment, and being needed. Define your retirement. What will it take to stay engaged and energized once that’s gone?
Mistakes Often Made
Having this picture in mind makes it easier to decide on your retirement date. As you do, avoid five mistakes rookie retirees often make:
1. Working longer than you need to—If you’re financially ready to retire, you might think that an extra year will pad your earnings and give you more security. As you do your calculations remember that one more year of work is also one year closer to the inevitable deterioration of your mind and body. You may find you will define your retirement differently.
2. Retiring debt without doing the math—In a perfect world, you’ll retire debt-free. This is a sensible goal, but take care. When you retire and have less earned income, interest rates may be higher than they are today. Will you be able to qualify for a new loan if you should need one?
Don’t Be Too Stingy
3. Being too frugal—Make sure you haven’t set yourself up to have more money than time left to enjoy it. If traveling is important to you, will you have the eyes, ears, mind, and knees to enjoy the trips? Likewise, before you undertake expensive home improvements, make sure they’re going to benefit you, not just some future owner.
4. Thinking you need to leave a lot to the kids—Your descendants will appreciate any money you leave them, but, if you live to your mid-to-late 80s, your children will be at least middle-aged and your grandchildren could be adults. Consider the value of giving them money now when they probably really need it and when you’ll be able to watch them enjoy it.
Strategizing Your Social Security
5. Putting off Social Security benefits to age 70—Conventional wisdom says this is usually the best choice but think through the ramifications. If you think carefully as you define your retirement, you may make different decisions.
First, you must live to age 80 or so for the larger Social Security benefit to make up for all the postponed payments. Estimate how long you will live by visiting the Social Security Administration’s Life Expectancy Calculator. Check out a few other online calculators to get an accurate picture.
Second, waiting to take Social Security means no monthly checks for the duration. Are you prepared for this change—after earning a regular paycheck for about 40 years? A Social Security check provides regular, predictable payments that help smooth your transition into retirement.
Third, unless you have other, sufficient income, living off savings instead of Social Security means having less money to leave your heirs, for your own emergencies, or to invest if the opportunity arises.
Resources from Mid Oregon Credit Union
As you plan your retirement date, talk to us at Mid Oregon Credit Union. We can help you plan a financially successful retirement.
Join us for our in-person workshop on Social Security & Your Retirement, Tuesday, January 24, 6:30 p.m. Get details and register here.
Call us at (541) 382-1795, email at info@midoregon.com or visit one of our 7 Central Oregon Branches. Learn more from midoregon.com.
The Perks Of Cleaning Out Your Friends List
Some friends are forever, and others are social media friends you no longer need, want, know, or trust. It’s a segment of social media that often gets overlooked, and revisiting that list of friends who have access to your posts can benefit you and your online security. Now is the perfect time to take stock of your list and do a friendship sweep. After all, do you really want total strangers seeing a video of that beginner ballet recital you starred in five years ago? You may not be the person you were then, and your circle of friends may not be the same either. So why are they still on your friends list?
Friend Facelift
Over time, a list of friends can get awfully long, and you’ll likely see that a number of those distant friends aren’t friends at all. Some may be friends of friends and total strangers. In other words, people you don’t know that you once gave access to your postings should be deleted. Now that users are more privacy and security conscious than when social media sites first started popping-up, the Facebook and LinkedIn accounts you’ve had for years could use a friend facelift.
Privacy Protection
Protecting your privacy should be front and center of all online activity, and that includes ferreting-out those contacts who were never your friends and those you have no reason to trust – nor will you ever since you have no idea who they are. Tagging pictures, group shots or posting about those you love and trust makes their lives part of the discussion, which they may not be happy about. The privacy of your friends and family should be respected, and with social media, less is always more when it comes to involving others.
Creeper-Peepers
We know they’re out there, those whose only interest in being on your friends list is the personal information they gather on you. It’s no secret that cyber thieves troll social media sites for nuggets of data they can cobble together and before you know it, a hacker has what they need for a cyberattack with you in the crosshairs.
Posting your particular details can provide the fuel for several attack types, including account takeover (ATO). That’s when a hacker steals your account identity, and they can use it to post messages with phishing links and malware attachments – all done in your name. Unfortunately, trustworthy friends and family could fall prey to these fake posts too, as well as becoming targets for future phishing campaigns themselves. Also, any duplicate friends and their old accounts should be deleted since they too could be compromised.
Purge Perks
There are other perks to purging your friends list that gives you clarity into what your loved ones are posting about. When your list is trimmed down, posts from those you’ve deleted no longer clutter your space anymore. Crazy or harmful posts by strangers become a thing of the past and that gives those you love some peace of mind. Also, cutting back on those posts gives more space to those you really want to hear from, and the noise from others no longer drowns out their voices.
Remember, keeping your circle of friends small not only benefits you and your security, but it can also help keep your friends and loved ones safe from prying eyes. And always keep in mind that what you share can always be further shared. When that happens, you lose control over it and there’s not getting it back.
Want to know more? Read additional Mid Oregon blog articles about online security and fraud protection.
Content based on an article by Stickley on Security
Start 2023 with a Financial Fitness Plan
Amazingly, it’s that time—the new year has arrived and right on schedule. Now is when we reflect on the past twelve months, and make resolutions to change certain areas in our lives—like our financial well-being. Whether you are trying to save money, reduce debt, improve your credit score, or fund a home improvement project, Mid Oregon can help.
Saving sufficiently for the future—whether that’s tomorrow or years from now—is crucial. Perhaps 2023 is the time to focus on building your nest egg for emergencies, retirement, or simply peace of mind. Mid Oregon offers a variety of savings account options that pay competitive dividend:
- Share Certificates—You can enjoy higher returns on your investments and keep your money safe and local. Take advantage of our latest 7-month and 11-month dividend offers.
- Saver’s Club Certificate—Set your goal and the amount you want to save every month. It’s ideal for saving for something special or not being caught short during the holidays.
- High Yield Savings Accounts—Savings account with a variable dividend rate that increases as the balance increases (minimum balance $1,000).
Minimizing debt is equally important. Consider applying for a home equity line of credit (HELOC) to consolidate debt or to build an ADU for extra income. How about transferring your high-interest rate credit card balance and take advantage of our no balance transfer fees?
Have you checked your credit score lately? Keep in mind that your credit score influences the type of financial options available to you—including interest rates on loans. Our CreditSavvy tool is a free, secure feature on our Digital Banking platform that you can use to improve your score, and monitor for potential fraud.
Building your financial plan does not have to be complicated. You can start by finding effective ways to make goals you can realistically achieve, and tools that will help get you there faster.
MAKE A SAVINGS GOAL
Set up a specific but realistic goal. It may be ‘paying off my credit card faster” or “saving $2,500 for an emergency fund.” If you see a tax refund in your future, use part of that money to give yourself a head start. Use a savings goal calculator, such as Mid Oregon’s Savings Goals widget in Digital Banking, to see how much you’d have to save each month. Or, as mentioned above, visit the variety of savings options Mid Oregon offers. Whatever you want to save for, set a goal and then work toward reaching it.
CREATE A BUDGET
A budget can feel daunting, especially if you have never done one or it has been a long time. But having a budget allows you to better control your money, instead of it controlling you. You will also feel more confident if faced with a financial setback. Begin by writing it all down—every dollar you spend. From the daily coffee, to treats for our four-legged friends and monthly subscription costs, it all adds up. Writing down all your expenses, even those that seem insignificant, is a helpful way to track your spending patterns, identify necessary expenses and prioritize the rest. You can jumpstart your budget by applying basic percentage rules:
- The 80/20 rule is one of the more simplistic rule where you use 80% of your budget for needs and wants, then save the other 20%. Rather than having a variety of categories, you simply divide your expenses and savings into these two buckets.
- The 70-20-10 rule spends 70% on your wants and needs, save 20%, and 10% for gifting. If you have debt, you can replace the 10% for giving and allocate it towards your debt payoff plan.
- 50/20/30 rule allocates 50% of your income toward essential expenses (rent, transportation, utilities), 20% toward personal financial goals (saving or paying off debt), and 30% toward flexible expenses (eating out, groceries, shopping, hobbies or entertainment).
- 30-30-30-10 rule is another popular method you can try. This budget breaks down into 30% housing, 30% expenses, 30% debt/savings, and 10% for entertainment/fun.
Figure out the best budget for you and get started.
PASS ON UNNECESSARY PURCHASES
It’s easy to lose track of how much money you spend on items you do not need. It might be on sale or “fit perfectly on the table corner.” Keep in mind that these unnecessary purchases can affect your bottom line. Get disciplined by identifying your needs vs wants. Do you need the newest smartphone or do you merely want it? Think about giving yourself a 24-hour cooling-off period between the time you see an item and when you make the purchase. If you’re shopping online, consider putting the item in your shopping cart and then walking away until you’ve had more time to think it over. In some cases, you might even get a coupon code when the retailer notices you abandoned the items in your cart. Turning down something you want now may be difficult, but the reward will be greater savings later.
BECOME A FAN OF AUTOMATION
- Digital Banking to ease financial tasks, saving you time and increasing your efficiency.
- Automatic overdraft protection. In a few easy steps, you can link your savings account to your checking to have a little added cushion in the event your expenses get a bit tight.
- Automatic loan payments. Your monthly loan payment will automatically be deducted from a linked checking or savings account.
- Setting up auto pay. This is a great way to save you time, hassle and offer peace of mind knowing your bills are paid promptly every month.
- Automate your savings: Direct deposit your paycheck into multiple accounts, including one for each of your savings goals.
TALK WITH YOUR CREDIT UNION
If you are feeling overwhelmed with your finances, reach out to your credit union and schedule an appointment . Sometimes it helps to have a personal conversation related to your specific needs, and Mid Oregon can offer helpful wisdom and insights.
The above strategies can help you to stick to a budget and save for your goals all while allowing for some budgeted fun. Remember, a goal without a plan is just a wish. Write it down, create the time and opportunity, and make it happen. Whatever your needs, Mid Oregon’s experienced team is a great place to start discussing your money-saving options. The year 2023 is a great time to start taking control of your finances and getting fiscally fit. Stop by a branch or visit us online at Mid Oregon Credit Union and start your Financial Fitness Plan today.
Want to know more? Read additional Mid Oregon blog articles about goals, budgeting, and debt consolidation.
Need more help? View Mid Oregon’s recent webinar recording of “Reaching Your 2023 Financial Goals“, and access the handouts at https://www.midoregon.com/education/workshop-handouts.shtml.