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.
Horses of Every Color!
Have you ever seen an orange horse? How about a pink one? Green? If you haven’t, then you haven’t been to the Crooked River Roundup Stick Horse Races or watched the kids paint and decorate their horses the day before at Western Daze in Prineville. There you will find horses of every color!
Painting & Decorating Stick Horses
This year, on Saturday, 6/27, children will be coming the Mid Oregon booth at Pioneer Park in Prineville, where the credit union will be providing stick horses and decorating supplies for the Stick Horse Race on Sunday. Starting at 10 am, as long as supplies last kids will customize their wooden steed for the race. scheduled to start at approximately 3:30 pm the following day at the Crooked River Roundup Rodeo at the Fairgrounds in Prineville.
The Stick Horse decorating is part of Western Daze, organized each year by Crook County Park & Recreation at Pioneer Park in Prineville. Starting Friday with vendors, live music, dancing, games and prizes, Western Daze culminates on Saturday with the Crooked River Round Up Parade from 10 to 11:30 am, followed by live music, entertainment and more. Visit the Crook County Park & Rec website for details.
The Race Is Part Of The Rodeo
Mid Oregon has been providing the stick horses and decorations with Credit Union staff volunteering for many years. The Stick Horse Race held on 6/28 is part of the Mid Oregon Credit Union sponsored Sunday at the Rodeo, starting at 2 pm, where kids under 18 get in for free. All children under 10 years old are eligible to participate in the Stick Horse Race. The rodeo starts Friday night at 7 pm, sponsored by Pioneer Memorial Hospital, continues Saturday at 7 pm sponsored by Facebook and finishes on Sunday. Visit the Crooked River Roundup website or its Facebook page.
The blank stick horses are free and so are the decorating paints, but they are for kids to compete in the race on Sunday, and quantities are limited. Please come early.
See you at the Park!
Pros and Cons of College Payment Strategies- Part 1
College Payment Decisions
Are you or a family member on the cusp of making college attendance decisions? Or have you already decided? So how will college expenses, tuition, room and board, books and incidentals, living expenses…how will they be paid? Do your have any college payment strategies?
In Central Oregon we have great options where students can live at home while they attend Central Oregon Community College or OSU Cascades. That can save a significant amount of money. But that still leaves many school costs to be funded. This is the first in a series of articles designed to help students and their parents make the best choices on how to pay for college.
Borrowing Can Be Expensive
College students who borrow for school graduate with a debt load equivalent to a new-car purchase or a down payment on a house, averaging $25,000.
Some borrowing might be inevitable. To keep it to a minimum, explore the features of other college payment strategies.
529 savings plans
Pros: Your savings grow tax-free and earnings escape federal tax if you use withdrawals for qualified college expenses. Your state might give you a tax break for contributions. You may invest in other states’ 529 plans.
Cons: If you use the money for noncollege expenses you’ll have to pay taxes and a penalty on earnings. A state-appointed firm manages the account you so lose direct control.
Prepaid tuition plans
Pros: You can lock in tuition at in-state public colleges years in advance. The tax benefits are the same as for a 529 savings plan. If your student goes to an out-of-state or private school instead, you can transfer the value of the account or get a refund.
Cons: Not all states participate. If you use the money for noncollege expenses you’ll have to pay taxes and a penalty on earnings.
Coverdell education savings accounts
Pros: The tax benefits are the same as for a 529 savings plan, and Coverdell’s expand the definition of “qualified” to include tuition at private elementary schools and high schools.
Cons: Your contributions can’t exceed $2,000 a year and the beneficiary must be younger than 18; contributions are limited by your modified adjusted gross income.
Roth IRAs
Pros: The money in a Roth grows tax-free. Withdrawals are not limited to qualified education expenses. You can avoid taxes on withdrawals as long as they don’t exceed your contributions. You can avoid a 10% early withdrawal penalty on earnings if you use the money for educational expenses.
Cons: If you are younger than age 59 ½, you will owe tax on any earnings you withdraw. If you are 59 ½ or older you must have held the account for five years to avoid taxes on earnings you withdraw. The ability to contribute to a Roth IRA is governed by modified adjusted gross income limits.
Read more suggestions in Pros and Cons of College Payment Strategies-Part 2
How to Cut the Cost of Driving
Gas Prices Are Only One Factor
Gasoline prices are rising again, but fuel is just one factor in the high cost of driving an auto. The average cost of driving a sedan 15,000 miles a year will cost you $8,698, or 58 cents per mile. You’ll spend 70.8 cents a mile, or $10,624 a year, to put 15,000 miles on an SUV with four-wheel-drive. These big numbers drive us to learn how to cut the cost of driving.
Many factors feed the cost of driving: financing, depreciation, maintenance, insurance, and driving habits.
Financing: Credit unions often offer the best rates on loans, but you also should compare the loan term, fees, and prepayment penalties. If the dealer offers a rebate, you may save more money by taking the rebate and financing at Mid Oregon Credit Union than taking the low-rate loan.
Depreciation: Depreciation is usually the largest part of the cost of driving: AAA estimates the average annual depreciation on a medium sedan driven 15,000 miles per year at $3,654. Kelley Blue Book says that after five years, the average car is worth 35% of its sticker price. But some cars, especially Honda and Toyota, have much lower depreciation. Ignoring the current value of a used car can put you “upside-down” if you trade the car and pay off the loan: You owe more on the car than it’s worth.
Maintenance and repair: AAA estimated the maintenance costs of sedans at 58.9 cents per mile in 2017. Maintenance costs varied widely by vehicle type but, on average, were up slightly from 2015.
Insurance: AAA estimated insurance costs for the average sedan at $1,115 per year in 2015, based on a low-risk driver with a clean driving record. Insurance for drivers who are male, younger than age 25, poor students, or have a record of moving violations and/or accidents is more expensive. Raising the deductible and reducing the maximum coverage can lower premiums but will increase your risk.
Driving habits:
* Drive defensively. Try to stay off the road late at night when most accidents occur.
* Keep tires inflated to improve mileage and cut the chance of a blowout.
* Drive mild, not wild: Accelerating slowly and coasting up to stoplights can improve gas mileage up to 30%.
* Use the cruise control for highway driving to save 4% to 14% in gas.
* Drive less to save on gas, oil, maintenance, and deprecation. Think about carpooling, taking public transit, biking, or walking.
Mid Oregon Credit Union can help with all your auto needs. Contact us today at (541) 382-1795 or beheard@midoregon.com.