LorMet Community Blog

Tips to Save Money: Trick Yourself Into Saving More and Spending Less

LorMet Webteam — Mon, 20 May 2013 12:18:00 GMT

Do you set the clocks ahead in your house to help you manage time better? Once in a while you may remember that you have extra time, but we imagine that there are plenty of days when you move a little faster and benefit because you set your clock ahead. When in it comes to your money and your future retirement, there is no need to set your clocks ahead—time moves fast enough as it is. However, there are things you can do to "trick" yourself into saving more money or being more financially prudent.

Set up Automatic Transfers

With LorMet Online Banking, you can transfer funds between your linked accounts, which include transferring money from a checking account to a savings account.

Some people don't bother with automatic transfers because they argue that they can simply transfer the money right back. You can, but there is a good chance that you will not do this often if the transfer amount is not too high. Small amounts of money add up so start saving a little bit each week, each month or each time you get paid.

Give Your Online Accounts Names That Will Make You Think

A LearnVest reader gave her online accounts "names to reflect their purposes, ranging from "Emergencies ONLY", "Do you really need that?" to "Needs Not Wants." This may help you if you make frequent online transfers from accounts that are supposed to be used to save money for your future.

Unsubscribe from Retailer E-mail Lists

Everyone loves a bargain, right? Sure, as long as all of your “bargains” don’t break the bank. Another LearnVest reader says that unsubscribing from retailer e-mail lists has helped her curb her shopping habit. Seeing the store names in your inbox, along with promises of great deals can be hard to resist.

photo credit: Tax Credits

Increase Savings as the Costs of Car Ownership Increase

LorMet Webteam — Fri, 17 May 2013 12:21:00 GMT

CNN.com reports that in an annual study the American Automobile Association (AAA) has found that the costs of car ownership have risen. It is possible that you'll pay 2% more to own a sedan, with the annual cost to own the average sedan being about $9,122 a year (small car owners will pay about $7,000 a year and SUV owners may spend about $11,600 on their cars.) The costs used to determine these figures include things like fuel, maintenance, insurance and tires, along with depreciation.

No Need to Panic Over Rising Costs

There is no need to panic over this rise in costs. If you have owned a car before, you may have come to expect that in addition to any car payments, you will need to budget money for your car's upkeep. First-time car buyers need to also be aware of this since it is easy to only focus on the costs of purchasing a car, giving little thought to all of the costs involved in ownership.

How LorMet Can Help

LorMet offers auto loans with low rates so you can drive off in style without putting your budget under too much strain. We cannot, however, guarantee that the costs of car ownership won't pinch your wallet. What we can do is recommend that you put money aside in a savings account for those times when you need to pay for car repairs or for when insurance premiums rise. Even if you have a new car and feel fairly certain that you won’t need to spend much for repairs for a while, starting to save now will make a difference once your car gets older.

photo credit: s myers

Use a LorMet Visa Credit Card to Build a Solid Credit History

LorMet Webteam — Fri, 03 May 2013 13:09:00 GMT

You may hear a number of cautionary tales warning you against the dangers of misusing credit cards. This is useful information to have, but all of the efforts to keep people from making mistakes with credit cards may get in the way of people using them effectively. Here are some ways that you can use a LorMet Visa Credit Card to your advantage:

Establish good credit

Credit history is one of those things where some can be better than none. While you certainly don't want to have bad credit, having no credit history at all isn't very helpful either. If you want to borrow money for a major purchase like a home loan or an auto loan, a lender needs to see how you have used credit in the past. If you have no credit history, they may not want to take a chance on you, even if you assure them that you save money and pay bills on time.

By using your credit card wisely and making your monthly payments on time, you can establish a good credit history and lenders recognize this. Paying your credit card bill on time demonstrates responsibility. And if you can pay it in full or pay most of it each month, this also helps your credit score—the more available credit you have, the more likely you are to get better interest rates for loans.

Keep up with expenses

The average adult today is probably too busy to take the time to write down purchases on a personal ledger but using the LorMet Visa Credit Card can help you keep track of where your money is going. You may not make every purchase with your credit card but if you use it often enough, you will be able to use your monthly statement or consult Online Banking eZCardInfo to see what you have spent.

photo credit: bredgur via photopin

Prepare for Retirement by Building Up Your Savings

LorMet Webteam — Wed, 01 May 2013 12:03:00 GMT

Not too long ago, Washington Post columnist Ezra Klein wrote about Americans and retirement savings, noting that "For years, pension experts have spoken of the “three-legged stool” of retirement savings: Social Security, employer pensions and private savings." He then breaks down why there is concern that this three-legged stool is getting rather wobbly. While you cannot control all of the politics involved in determining the future of Social Security and you may or may not secure employment that offers a generous pension, you can save money.

Klein writes: "About a third of households don’t have a savings account at all. More than 40 percent don’t have enough to cover basic expenses if they lost their main source of income. In a vicious cycle, the need for savings is so great that many workers are tapping into their 401(k)s early…."

LorMet offers savings accounts to help you put money aside. You can open more than one account, so you can divide money into separate savings pools to make sure that you don't touch the money you are saving for when you retire. All of our savings accounts can be opened with just $5 and require a minimum balance of $50 to earn dividends.

Primary Savings

Your membership with LorMet Community Federal Credit Union begins when you open your Primary Savings (share) account.

Vision Savings

You can open a Vision Savings account after opening a checking account with us. Use this account for personal budgeting purposes or a specific savings goal.

Holiday Savings

This account allows you to withdraw one time per year. Each October 31st, your Holiday Savings funds will be automatically transferred to your Primary Savings account. You may then transfer the funds to another account; withdraw the funds; or roll the funds into another Holiday Savings account.

photo credit: Alan Cleaver via photopin

Open a Home Equity Line of Credit and Make Spring Repairs

LorMet Webteam — Tue, 30 Apr 2013 13:00:00 GMT

People don't just get a LorMet Home Equity Line of Credit(HELOC) because they have a major renovation planned; they also get them because the number of small repairs and improvements a homeowner does throughout the year can add up. The need to 'do a little work on the house' can pop up at times when your budget is stretched and this is when having a HELOC can make a difference.

Just look at these "10 Home-Maintenance Tips for Spring" that HGTV.com recommends:

Make sure all is well with your gutters. Ignoring gutters that drain improperly can lead to more expensive issues later.
Fill low areas of your yard with compacted soil to avoid flooding and discourage insects from breeding in large numbers.
Check the wood trim around your windows. Many Make any necessary repairs so a rainy spring doesn’t cause damage.
Also check out wood shingles to see if any need to be replaced. HGTV.com says, "you may want to start a budget for replacement" but if you have a LorMet HELOC, you can use that as long as it is open within the draw period.
You can look for damage on the outside of your chimney but you will need to have a professional to clean and inspect the inside.
Inspect the wear and tear on concrete slabs on your property. Fill the cracks first and later you can power wash and seek seal the concrete.
Make sure that firewood is "stored at least 18 inches off the ground at least 2 feet” from buildings on your property.
Inspect outside hose faucets and your garden hose.
Pay to have your air conditioning system checked because "an annual service call will keep the system working at peak performance levels."
Make sure your lawn mower and other outside equipment is in good working order now, before you need to use it.

photo credit: bluecinderella via photopin

Avoid These Blunders and Boost Your Credit Score

LorMet Webteam — Mon, 29 Apr 2013 12:58:00 GMT

If you are young and just starting to build your credit history, you probably know that you should do your best to pay bills on time but there are other actions you can take that may not seem all that bad that may harm your credit score.

In "5 Easy Mistakes That Will Damage Your Credit" Yahoo! provides guidance to help you avoid these blunders:

Closing accounts

You may think you are cleaning house by closing credit accounts but you may not know how to go about it. A sizable part of your credit score is tied to how much debt you have in relation to your available credit. If you close an account and lower your limit, your ratio of debt to available credit will change. Yahoo! advises: “If you have to close accounts, make sure they are your newest accounts, as long-term accounts help bolster your credit score the most.”

Using a credit card too much or too little

It probably seems obvious that you don't want to max out your credit cards. What is less obvious is that you are better off carrying small balances on more than one card than you are having a large balance on one. If you didn't know, there are no balance transfer fees for the LorMet Visa Credit Card. On the other hand, if you are reluctant to use credit, you may think merely opening an account is enough. This is not the case. Your card needs to be active for the company to maintain the account and report your credit history to the credit bureaus. There is nothing that says you can't make small purchases and pay them off to demonstrate your creditworthiness.

Paying little attention to your credit report

You just need to check them once a year at a minimum. And if you see an error don't let it slide, contact the bureau in writing. If you want your credit score to accurately reflect you, make sure your credit report is accurate.

photo credit: kenteegardin via photopin

LorMet: How Budgeting Your Money Can Change Your Life

LorMet Webteam — Fri, 26 Apr 2013 15:32:00 GMT

You've probably seen hundreds (or maybe even thousands) of top ten lists by now. Some are entertaining but few provide the kind of wake up call that eHow’s "10 Cities With the Worst Budgeters" does. Not one but two cities from our state made the list of worst budgeters, while no city from our state made it to the list of cities with the best budgeters. To come up with these lists, "Card Hub analyzed numbers like debt-to-income ratios (the amount of debt you have compared to your income), bankruptcy and foreclosure rates, and relative cost of living … in the nation’s largest metropolitan areas."

But do not despair: if you know that you are not great at budgeting, you can change that. And if you know that you do a good job with your finances, you may still find that reviewing your budgeting methods may be a good idea. eHow offered some tips:

"Consider doing it online"

It may be tough to keep up with a budget that you write down on paper, but monitoring spending and expenses electronically may keep you on track. LorMet offers Online Banking and you can view E-Statements and to keep up with your account.

"Rank expenses"

Some of us are counting extras as basics. After you have covered your most basic needs, then you can consider luxuries. Examining your spending will help you pinpoint luxury items and services that you have convinced yourself are necessary when they are not.

"Create an emergency fund"

The article points out that even if you have no debt, the lack of emergency savings can be detrimental. Unexpected expenses can be difficult to handle if you don't have any savings. LorMet offers savings accounts that let you put money aside for a rainy day.

photo credit: 401(K) 2013 via photopin

Take a Break at LorMet's Arabica Coffee House!

Jacqueline Sergent — Tue, 23 Apr 2013 11:28:00 GMT

Ever have a day when you just need a BREAK? Or how about one of those mornings when you just can’t get moving? (Yeah, if you’re anything like me the second one happens just about every morning!) Well, my hot spot is Arabica located inside LorMet Credit Union!

I love that Arabica has such a large assortment of delicious caffeinated and decaffeinated drinks for all of my different moods and some tasty snacks too.

There is FREE WIFI so you can update your Facebook (or do actual work…) while sipping on a delectable Latte.

The professional and welcoming atmosphere is perfect for that impromptu business meeting. The friendly and experienced Baristas have also come up with some awesomely affordable DAILY SPECIALS, so you can treat your friends and colleagues without breaking your budget. (My favorite is FRAPPE FRIDAY buy one get one for a $1!)

Don't forget to Like and Share Arabica Coffee House on Facebook.

So, stop in Arabica any day Monday thru Saturday and take that break you so much deserve!

DAILY SPECIALS

Mocha Monday
$1.00 off any size Mocha

Tea Tuesday
Receive a FREE pastry with the purchase of a Regular Tea or Chai Tea

Wild Frappe Wednesday
$1.00 off any size Frappe

Turtle Thursday
$1.00 off a Large Turtle Mocha or Latte

Frappe Friday
Buy one Frappe any size at regular price and get a Medium Frappe for $1.00

Smoothie Saturday
$1.00 off any size Smoothie

(Specials only offered at this location)

OPEN HOURS

Mon-Fri: 8am-4pm
Saturday: 8am-Noon

Arabica is located inside LorMet Credit Union at 2051 Cooper Foster Park Rd (across the street from Tractor Supply).

LorMet offers Home Renovation Tips: Part 2

LorMet Webteam — Mon, 22 Apr 2013 13:15:00 GMT

In "4 tips from a serial home remodeler,", CNN.com offered tips from Josh Garskof—a man who has taken on home remodeling projects, large and small.

Be a Good Customer

Garskof acknowledges that things can get tense between a contractor and a homeowner. His advice is to pay on time and be respectful. Should there be a difference of opinion, it "…pays to pick your battles. While you certainly want to hold a hard line on quality and price, be flexible about timing when possible."

Plan for Overspending

Whether it’s because of an unexpected find like missing beams or because you decide you want fancier fixtures, your project may cost more than anticipated. Garskof tells readers to be realistic and not start a big home renovation project thinking they will be able to hold fast to their intended budget.

He takes it for granted that you already know that you should not write a check from your home equity line of credit for the final payment until you are satisfied with the work, but being completely satisfied with the way the work looks really isn’t enough. There are things that even the best contractors won't do because it is outside their scope of work or because they just don't think about it. These include:

Magnet Sweep

Have you contractor ensure your future safety by asking that they remove fallen nails from your property. This can prevent many headaches for you after they are gone.

Sample Pieces

Should you need to renovate, repair or replace items down the road, you will need to be able to get the same thing or a close approximation and having samples will save you legwork in the future.

Certificate of Occupancy

Garskof suggests you don't give the final payment until you have this document. You will need it to prove the renovation work is safe should you sell your house in the future.

Photo credit: anastaz1a via photopin cc

LorMet Shares Home Renovation Tips: Part 1

LorMet Webteam — Fri, 19 Apr 2013 13:14:00 GMT

As a LorMet member, you may apply for a LorMet home equity line of credit with a low, variable rate. However, once you have secured these funds, you may not be certain of how you can use it in the most beneficial way. CNN.com offers "4 tips from a serial home remodeler" to help people who need advice on how to spend their home improvement dollars. The writer, Josh Garskof, writes that he is now "good at maximizing my renovation dollar" after eight years of home renovation projects including replacing a roof and patio, finishing a basement, and remodeling a bathroom, family room and kitchen.

Go with a Mom-and-Pop Shop

Garskof thinks it is better to work with renovation professionals that are involved in the work themselves because the quality of their work is better and there is less chance that instructions will be overlooked. He adds that you are likely to pay less because smaller companies have lower overhead costs. However, he does make an exception to this principle for a complex project like a kitchen renovation. In this case, a "larger company with a full-time manager at the helm is likely to have relationships…with the best subcontractors, and may use specialists for more elements of the job."

Buy it Yourself

Purchasing the materials yourself means you are paying what you want for the materials used in your renovation projects and choosing exactly what you want. Even with specific instructions or a good eye for what will work, a contractor may not pick something that suits your tastes. They can also markup the price so you may pay more than if you had bought it on your own.

Photo credit: Stirling StoneWorks International via photopin cc

Advice from LorMet: Couples: Start Retirement Planning Years Ahead

LorMet Webteam — Thu, 18 Apr 2013 13:55:00 GMT

We've discussed how married couples need to work together to plan for retirement. Part of the reason you need to beef up your savings account and contribute to your IRA is so you can spend your golden years with your beloved. The Wall Street Journal asked The Experts, a panel of "industry and thought leaders" what they thought couples should do before they retire to make sure they can live their days in harmony. Much of the advice involves preparing in advance for retirement to ease into this major life change.

Make Sure You Have Enough Saved to Retire

This may seem obvious but you'd be surprised at just how many people focus on retiring at a certain age, giving little thought to whether or not they have enough money.

Get Reacquainted

A coupe of experts felt it was important for older couples to get to know each other again and plan something fun that they could look forward to together. If there is a concern that spending a lot of time together in retirement might be an issue, start to "date" each other again. Morgan Fairchild suggests, "Start thinking of each other as friends and romantic entities again, instead of just working parents with responsibilities."

Make a New Schedule

After a while, you may tire of sitting around. Even if you don't, your daily schedule will not be the same once you leave work. You can lend a little structure to your days by outlining how you would like to spend your time.

Explore a New Line of Work as a Couple

Whether it is because of financial need or a desire to stay active, some couples are retiring and then returning to work together. Maybe you wanted to run a small business and felt it was impractical before, but you would be willing to give it a try as a retiree. Working with your spouse means you are aware of the others person's strengths and weaknesses so you can figure out the best way to co-exist.

Photo credit: tommie m via photopin cc

Learn How You Can Grow Your Money

LorMet Webteam — Wed, 17 Apr 2013 13:57:00 GMT

You probably get a lot of advice on how to spend (or not spend) your money but how much advice do you get on growing your money? If you feel as if you don't have enough money, one way to feel better is to find ways to get more. In some cases that means working more, but there are times when you can make better use of the money you already have. In "8 great rules to grow your money", finance expert Jean Chatzky offers tips on how to make your money work for you.

Bank your Windfalls

Rather than going on a spending spree, consider putting away the extra money you receive. One of the most obvious windfalls people get is a tax refund. Chatzky writes that with an average tax refund (about $3000), "If you plowed that sum every year into an IRA that earned even a conservative return, you’d have a nice six-figure nest egg at retirement."

Less obvious windfalls include bonuses, money you get as gifts, or money you get from selling old things to a used goods store or at a garage sale. Chatzky adds that it can help to spend a little (10%) so you don't feel deprived, and then save the rest.

Manage What you Can

She suggests you "focus on the manageable." It is easy to become overwhelmed with stock prices, tax codes and interest rates but since these things are out of your control, you should not concentrate on these things.

Credit Cards Don't Have to Equal Debt

Chatzky writes "Research shows we spend more when we use credit than when we use debit, and more when we use debit than when we use cash." It is important to be aware of your spending habits. Credit and debit cards are useful, so you don't have to only spend cash; you just have to use them wisely. If you know that you tend to spend too much using a credit card, leave it at home.

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Performing an Audit of Your Own Finances

LorMet Webteam — Mon, 15 Apr 2013 13:51:00 GMT

The word audit can bring some scary things to mind…if someone else is doing the auditing. However, if you follow the advice in U.S. New and World Report's "Perform a Spring Audit" article, you may find that cleaning up your own finances can help avoid having someone else insist that you do so. Here are two suggestions for how you can examine your own finances and make changes that will save your family money:

Pay Bills Online

The article says, "If you pay 12 bills per month with online bill pay, you'll save more than $65 on postage annually." Another advantage to signing up for LorMet Online Bill Pay PLUS is scheduling. If you are the kind of person who forgets to pay bills, you can have the bills paid automatically, which will lessen the chances you'll be hit with a fee for paying your bills late.

Lower Energy Costs

U.S. News & Report offers standard advice that does bear repeating: you can save on energy bills is you keep your air conditioning unit it good shape, use ceiling fans, keep blinds and drapes closed during the day, buy a programmable thermostat and make sure you aren't leaking air through windows and doors.

The article also has, perhaps, an unexpected tip:

“A common misconception is you'll lose your energy savings when trying to cool the house back down after you get home; according to a study from Energy.gov, this is simply not the case. By keeping your home at a slightly higher temperature while you are not home will actually slow the flow of heat into your house…”

Photo credit: Dave Dugdale via photopin cc

Deciding what to do with your 401(k) or Retirement Assets?

Shavena Brown — Fri, 12 Apr 2013 15:39:00 GMT

If you’ve had a recent change in your job, you have important decisions to make. In “Cash out, roll over or leave 401(k) behind, Bankrate.com states that “if you leave your funds in your 401(k) plan, you may be less likely to keep up with it after you’re severed from the company.”

A direct rollover to an IRA is one solution that can provide peace of mind and keep your retirement savings safe for the future. LorMet Credit Union Member Service Representatives can guide you through the process and help you with questions you may have such as:

Will I be penalized for a Direct Rollover?

You may be penalized if you cash out your 401(k). You should consider a direct rollover from your qualified pension, 401(k) plan, or 403(b) plan. This way the funds are remitted directly to the issuer of the receiving IRA. It will be reported to the IRS as a rollover.

When can I start taking distributions without a penalty?

Depending on the reason for the distribution, your age and other circumstances, there can be a penalty for withdrawal so you will want to get the assistance of your member service representative or independent financial advisor.

Can I contribute to an IRA after I retire?

Contributions are different based on the type of Individual Retirement Account. You will need to determine if you are eligible to make contributions after you retire and you will also want to know the contribution limits. Kiplinger’s “2013 Retirement Account Contribution Limits” states that “you’ll be able to stash more in 401(k), IRA and Roth IRA in 2013 compared to 2012.”

These are some of the questions that you may have regarding your retirement assets. You may have other question such as:

How old do I have to be to make contributions into an IRA?

Take time to research your options before making a decision about your retirement savings. We’re here to help; call or visit with one of our friendly Member Service Representatives today. You may reach us at 440-960-6600 or go to LorMet.com for branch locations.

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LorMet Asks: Doing Taxes at the Last Minute? Lower Your Tax Bill

LorMet Webteam — Fri, 12 Apr 2013 13:48:00 GMT

Waiting until the last minute to finish your taxes does not mean that you are doomed to have a bigger tax bill than necessary. While it is better not to be anxious or rushing around to complete your taxes, you have a lot of company if you haven't filed yet. The important thing is that you either file and pay your taxes on time or make arrangements with the IRS to do so later.

In “Last-Minute Tax Tips to Save You Money,” The Motley Fool outlines ways you can save money no matter when you file your taxes and what to do if you just can barely finish on time. As always, you should consult a tax preparation professional if you are unsure about filing your taxes.

Contribute to a Traditional IRA

If you already have an IRA, you can add money to it on or before April 15 in order to lower the amount of taxes you owe. Is this cheating? Certainly not. The government allows you to do this and by taking advantage of this opportunity, you can jumpstart your retirement savings and lower your taxes at the same time.

You'll Save if You Pay on Time

When you don't file a return, you will owe a 5% penalty for each month you are late, "But if you file and don't pay, the penalty is far smaller: just 0.5% of your outstanding tax bill for every month."

You can complete and turn in IRS Form 4868 by April 15 so you can have more time to finish your tax forms. However, the article adds, "But what many people don't realize is that even if you file for an extension, you still need to pay the tax by April 15… Make your best estimate of what you'll owe and send it in with your extension, and you'll save yourself from up to six months' worth of interest and penalties down the road."

Photo credit: 401(K) 2013 via photopin cc

Switching jobs? Protect your investment with a LorMet IRA.

Shavena Brown — Fri, 05 Apr 2013 20:07:00 GMT

So you have made the decision to switch jobs and your 401k plan is still in your previous employer’s account. Do you keep your retirement with your previous employer or do you rollover your 401k into a LorMet Traditional IRA?

In “Sense of security when saving for retirement”, The Morning Journal offers advice on saving for retirement in different life stages. For Lorain County residents, eliminating the potential for high fees and having a safe place to save their life savings is a top priority.

Preserve your investment

Preserve your investment because no matter what stage you are in life, you never want to take a loss on your life savings. Consumers have lost faith in the stock market. “Senior citizens and people nearing retirement age have flocked to Direct Rollover IRAs to save what they have earned.” “They want peace mind and stability.” Given the instability of the market, people enrolled in employer plans would trade a higher return for a safe place to deposit their life savings. If you are switching jobs or recently retired, this is the time to act. If you don’t reinvest in a tax deferred account, there will be tax penalties and if you reinvest where there are fees, you are not preserving your investment.

Disadvantage of investment companies

If you are considering other investment companies, keep in mind that these companies are in the business to provide packaged investment strategies to employers and individuals. Just as their other clients are charged fees, it is very possible that you will be charged the same or higher fees. These companies also invest your funds into market, so you will not have the peace of mind knowing that your principal is safe.

Making the decision of what to do with your life savings can be difficult. Before making such an important decision, always consult a tax advisor.

photo credit: scottwills via photopin cc

LorMet Proposes: Should Married Couples File Taxes Seperately?

LorMet Webteam — Fri, 29 Mar 2013 13:33:00 GMT

Married people have the option of filing their taxes jointly or separately. If you choose to file jointly, you both need to sign the tax return (in other words, you need to be in agreement about filing jointly). While there are many reasons a couple would choose to file separately, commonly held wisdom is that it is more beneficial for a couple to file jointly.

Bankrate.com discussed a few scenarios in which filing jointly may not be the thing to do.

One spouse earns little money and has a lot medical expenses: If you didn't know, there is a threshold one needs to meet in order to itemize medical care. Medical expenses may not reach that limit if a couple combines their income so it may be better if a spouse that earns less and had more medical costs to file separately.
One spouse feels that the other "uses questionable tax-filing techniques": Filing jointly makes both spouses legally responsible for the shared tax return and the information provided therein. Filing separately offers more protection.
The couple is headed towards divorce: The process of dissolving a marriage is simpler when a couple hasn’t filed taxes together.

When a couple decides to file separately, each one loses the opportunity to take "the earned-income credit, claim adoption expenses or child and dependent-care costs, use educational tax credits or even deduct the interest paid on a student loan.”

However, rather than make the decision based on what you think may happen, you can use tax software to see the results for filing separately and filing jointly. That way you will have the numbers in front of you and you can see which method gives you the best outcome. Of course, you should consult a tax advisor for specific assistance with your personal circumstances.

Tips for Buying a Car and Receiving an Auto Loan This Spring

LorMet Webteam — Wed, 27 Mar 2013 13:08:00 GMT

Forbes.com offers advice for people who have waited for the weather to warm up before getting another vehicle in "5 Things to Know Before You Buy a Car This Spring," observing that rising gas prices and tax refunds are the kinds of factors that potential car buyers are considering. LorMet members can get a great deal on an auto loan and consider this advice:

Don't Wait if You Want a Popular Make and Model

As is the case with anything popular, the cars that are in demand will go fast. This is especially true if the car you want is fuel efficient because rising gas prices will cause people to grab those cars quickly.

Find Out the Value of Your Trade-In

You don't want the shock of learning that you don't have nearly as much trade-in value as you thought. If you learn that you owe more on your car than it is worth, Forbes.com suggests you "ask your…dealer or credit union to wrap it into the transaction."

Prepare Yourself for a Lifestyle Change

If you plan to get a much larger or much smaller car than the one you currently drive, make sure you are ready for the change. You can borrow a similar car from a friend or ask the dealer if you are able to take the car home and bring it back the next day.

Home Equity Loan or Home Equity Line of Credit?

LorMet Webteam — Tue, 26 Mar 2013 13:33:00 GMT

In “Dollars & Sense: Home equity or line of credit,” one Fox affiliate station offered homeowners some thoughts on which option to take when they are thinking of using the equity in their house.

While you could use a home equity loan or a home equity line of credit to finance a home renovation, the expert quoted in the article recommended using a home equity loan for improving your home. She felt that a home equity line of credit would be the choice for people who want to consolidate other debt or pay for tuition.

One chief difference between these two options for borrowing money is the interest rate. A LorMet Home Equity Line of Credit has a low variable rate. Some people are not comfortable with the idea of having an interest rate that may change. However, the benefit of a home equity line of credits is that you can borrow as much (or as little) as you like at a time. The rate may vary but you are not obligated to take out a certain amount at a certain time.

In contrast, a LorMet Home Equity Loan offers you stability with a fixed rate. Since you will be borrowing a single lump sum, it makes more sense to use this type of loan for a specific purpose, such as a home renovation or improvement.

LorMet Offers How to Help Your Child Graduate College in Four Years

LorMet Webteam — Mon, 25 Mar 2013 12:05:00 GMT

One CNN.com article on the cost of college (“Public college tuition spiked 8.3% last year”) points to the reason they website also published this article: “Get your kid to graduate in 4 years,” in which CNN.com declares:

"Most students take five to six years to earn an undergraduate degree, the Department of Education reports. That adds about $35,000 to the sticker price of attending a typical in-state public university and much more to the cost of most private colleges."

However, you do not have to sit back and watch tuition bills roll in for 5 or more years. Before your child starts college, he or she can take Advanced Placement courses in high school that will earn college credit for a passing exam grade. CNN also offers other strategies to avoid having your child become a part of this trend.

Check Graduation Rates

Send your child to a school with a high graduation rate (50% for a public college and 70% for a private institution). Find out if the school has advisors and programs in place to help students get used to school and give them a boost if they start to fall behind.

Divide the Load

Help your child see the need to take a full course load each semester. Schools typically allow you to take 12 credits but taking 15 will put a student on track to graduate on time. Barring illness or some other emergency, your child should take more than the minimum and if they work, they should make sure work doesn’t interfere with taking a full course load.

Find Low-Cost Ways to Make up Classes

If your child changes majors, fails a course, or needs to take less than a full load, help him or her other look for ways to get back on track without staying beyond four years. With the school's approval, your child may be able to take some basic courses over the summer at a community college or take accredited online courses.

Convincing Americans of the Need to Save for Retirement

LorMet Webteam — Fri, 22 Mar 2013 13:56:00 GMT

A while back we presented the idea that seeing an older version of yourself could motivate you to save more for retirement. Many of us don’t save for retirement because we are so concerned about the present. We fail to consider that it will likely be more difficult to earn money when we are ready to retire.

Money magazine spoke with Meir Statman, an expert in the field of behavioral science, to get his insight into why people seem resistant to saving enough for retirement. In a recent paper, "he argues that improving Americans' retirement security may require something stronger than a polite nudge." Statman is concerned that half of the population is in a crisis because people simply do not want to save money for the future. Statman advocates mandatory savings plans, an approach similar to what countries like Israel and Australia have:

“It's similar to a 401(k) except that it is mandatory instead of voluntary. Employers would administer it. For self-employed people, there would be something like the insurance exchanges in the new health care law."

We don't know if Statman's ideas will really take hold, so for the time being, it is up to each of us to find ways to prepare for retirement. If your employer offers a savings plan you should contribute as much as you possibly can. And then you should also have some savings that are independent of the plan you have with your employer. You can open multiple savings accounts with LorMet, so you can designate one just for retirement. We also offer IRAs to help you put money away for your golden years.

Simple Savings: Plan Ahead to Avoid Impulse Shopping and Spending

LorMet Webteam — Thu, 21 Mar 2013 14:55:00 GMT

One of the best ways to avoid impulse purchases is to plan ahead for them. Rather than think that you will have the discipline to avoid spending money needlessly, find ways to anticipate your urge to splurge and then prevent yourself from following through on it.

USA Weekend Magazine spoke with Jennifer Baumgartner, author of "You Are What You Wear: What Your Clothes Reveal About You" to get suggestions.

Try (true) Window Shopping

Go to a store without money or credit cards and just look for what you intend to buy. Think about what you would buy if you had the money. Then when you get home, think about all that you wanted to buy and decide what you really need before returning to the store with money.

This exercise is for those times when you are planning to shop (as opposed to those times when you wander into a store).

Don't Make Online Shopping too Easy

Stores know that if you have an account or allow them to store your information, you are more likely to make a purchase. Each time an online retailer asks you to put in the information for your LorMet Visa Credit Card or your LorMet MasterCard Debit Card, you can use that extra time to consider the necessity of a purchase.

Put it on Hold

Baumgartner suggested putting a picture of what you want where you'll see it often or placing items on hold at a store. The idea is that if you see the item often enough you may get enough of it. Or, on the other hand, not seeing something for a while may help you forget or minimize its importance. If you really still want the item after it has been on hold or after you have seen it for a while, then perhaps you should get it.

Lifestyle Changes that Can Save You Money

LorMet Webteam — Mon, 11 Mar 2013 14:23:00 GMT

U.S. News & World Report offers "8 Painless Ways to Save Money" with suggestions that will allow you to "reduce spending without big changes to your lifestyle." However, as the saying goes, 'no pain, no gain,' so these changes may require some effort on your part. The changes they discuss are good things to consider if you feel as though you have already trimmed your budget as much as you possibly can. Some of the suggestions include lifestyle changes that will help your overall financial outlook:

Get healthy

You didn't expect that one, did you? However, better health will allow you to pay less for life insurance and possibly reduce your health care costs. If you are a worker with no paid time off, it is in your best interest to remain healthy to avoid missing days at work.

Go over your auto insurance policy

Consider raising the deductible to save money on premiums. You should also reexamine your policy each year and compare quotes online instead of automatically renewing. You may be able to get the same coverage for less somewhere else but you won't know that if you just renew.

Work on your credit score

The writer feels as if this is most painless way to save money. Improving your credit score means you can get loans at lower interest rates. Some places look at your credit score when you apply to rent an apartment and some employers run credit checks before hiring.

Get a prepaid cell phone

A lot of people cannot imagine having a prepaid cell phone but those that do avoid overage charges and waste. Some people don't use all of their minutes or texts or data yet they continue to pay for these things each month.

Work with Your Spouse to Save for Retirement

LorMet Webteam — Fri, 08 Mar 2013 15:04:00 GMT

A man wrote to CNN’s financial column to ask how he could work with his spouse so that the couple would "be on the same page when it comes to saving for retirement." In his response, the writer mentioned a 2011 poll from Fidelity Investments that found that of 648 married couples, "a third didn't agree or didn't know where they planned to live in retirement, almost half didn't see eye-to-eye about whether they would continue to work in retirement and nearly two-thirds disagreed about whether they had a plan to create post-career income."

With all of your everyday concerns, it can be easy to put retirement on the back burner, but married couples need to take the time to discuss their retirement savings, including IRAs and other investments.

Figure out how much you'll need

Many people avoid figuring out how much they will need in retirement because this seems frightening. However, knowing you haven't saved enough will not be scarier than retiring and simply running out of money.

Coordinate your efforts

Even if you both think that you're doing a good job of saving money on your own, it helps to work together. As an example, the article outlines a scenario where one spouse has a better matching policy for their retirement savings at work and suggests, "…rather than each spouse simply contributing the same percentage of salary to their individual plans, a couple may be able to get a bigger bang from the same total contributions by directing a larger share of their savings to the more generous plan."

Annual check-ups

You should sit down at least once a year to see if you are on track with your retirement savings and discuss any adjustments you may need to make.

Supporting Parents and Adult Children? Don’t Forget Your Own Savings

LorMet Webteam — Wed, 06 Mar 2013 15:42:00 GMT

In "Sandwich generation takes a hit supporting adult children and aging parents," The Washington Post describes a change in what was typically seen as the sandwich generation: "In the past, the burden typically was shouldered by a middle-aged woman who stayed at home caring for young children and aging parents."

However, now there has been a shift; while the people feeling squeezed may still be middle-aged, they are now supporting adult children instead of young ones. A recent Pew Center report found that, "The twin financial and emotional burdens on the one in seven Americans who are squeezed between their children and their parents have mounted since the recession…"

You don't want to abandon your children or your parents so you do all you can to help and sometimes in the process you forget yourself. One woman interviewed discussed how she and her husband provide substantial financial support to their adult children and she recently took a leave of absence from work to care for her elderly mother. They no longer take vacations and while her husband would like to retire soon, she is not sure if they can.

It is important to keep up with your retirement savings to the best of your ability. Don't forget about adding money to your IRA and savings account. Even if you are not able to add a huge amount, you can accumulate money over time and you need to stay in the habit of saving for the future. If you have a family member who relies on you, then putting aside money means you can continue to help them in future should they need it.