Author: Vince Liuzzi
Solving complex issues and maximizing the value of your enterprise
January – the month of financial triage
This was the headline on an article I read recently about holiday spending and the impact to an individual’s credit score. The headline referenced the fact that consumers typically start the new year with a fresh view and perspective on their household finances after a period of heavy spending and debt creation – what about the previous 10 months of the year? The fact is, we must be focused on developing healthy fiscal habits throughout the year; proactively creating overall better money habits – avoiding the need for financial trauma care.
A recent study by Fidelity of 2014 New Year Financial Resolutions, reports that 54% of Americans are considering making new financial resolutions this new year – up from 35% in 2009. This increase reflects an accelerating, and continuing need for people to develop and maintain effective fiscal habits in a constantly changing, and at times uncertain environment. Americans report a need to focus more on savings, debt reduction, expense reduction, and long term planning.
Your trusted banking professional or relationship manager can work with you to develop tactics and strategies that will help you not just succeed, but flourish financially in the new year. When selecting a financial services partner, choose a firm and professional team that truly understands your individual needs and long term objectives. Consider a full-service community bank like DNB First who offers a broad range of financial products and services, locally delivered through a neighborhood based, multi-channel distribution system. A leader in the region, DNB First offers an authentically local relationship banking experience and has been banking customers in the community since 1860.
Start the year with a renewed commitment to developing more effective money habits. Don’t wait until January to “triage” your finances. An effective partnership with your community based financial services provider will help you improve your own personal money habits throughout the year. Have a year-long focus on your finances – consult with your banker today to learn ways to improve your own personal fiscal fitness!
– Vince Liuzzi, Executive Leader Greater Philadelphia community
New Year changes to mortgage rules under Dodd Frank
In early January 2014, a change will be made to allowable debt to income for qualified mortgages under Dodd-Frank.
“Home loan seekers need to know that the allowable debt-to-income (DTI) ratio for a qualified mortgage under Dodd-Frank come January will be 43 percent,”
Grace Keister of First Team Real Estate in Irvine, CA.
This change represents a two percentage point reduction from the current traditional, conforming loan requirements which allow up to 45% debt to income (DTI) ratio. This change is part of the “ability to repay” rule established by the introduction of the Qualified Mortgage (QM) category under Dodd-Frank.
There are ways to lower debt to income ratio when applying for a mortgage or refinance. Debt consolidation is one path to lowering monthly payments, improving DTI ratio. Paying off low balance installment loans like auto or student loans may help as well. It’s important not to negatively impact cash reserves while in the qualification process – consult your mortgage advisor!
While the impact will be felt by all, there is an added burden on first time home buyers who typically stretch every dollar to buy their first home. Professional consultation by an experienced Home Mortgage consultant is vital in determining the most effective way to proceed through the mortgage process. Select a professional that understands your unique situation and knows your real estate community well.
Who Made That Charge
The recent news reports of credit and debit card information breach at one of our country’s leading retailers in the middle of the holiday shopping season has caused millions of consumers to be very concerned about security and precautions retailers take to secure and safeguard personal financial information. The theft illustrates and exposes the critical need that responsible businesses must take to prevent situations like this one from occurring in the first place.
Protect your accounts. It’s important that customers proactively monitor their accounts to ensure all charges posted are legitimate and authorized. Most banks and credit card companies offer free, on-line services that allow you to review your accounts and see what charges and credits have posted to your accounts between statements or billing cycles. If you see a charge that was posted to our account that you did not make or authorize, notify your financial institution immediately! Your bank or credit card provider will investigate the charges and ensure you are not held responsible for charges you did not make.
If you have not taken advantage of your financial institution’s on-line platform, you should do so right away. Many community banks like DNB First (DNBF) offer free on-line banking and bill pay services that provide consumers with the opportunity to immediately access financial information connected to your debit and or credit card accounts. By reviewing online account activity regularly, you will have the opportunity to identify charges or transactions that you suspect may have been unauthorized. If you become aware of a transaction or charge that you did not make or authorize, contact your bank or credit card company immediately and have it investigated! Companies will remedy the situation for you consistent with law, government rules and regulations.
Vince Liuzzi
Executive Leader
Introducing… Your Community Bank Wealth Advisor!
Financial planning is a very important and very sensitive matter for consumers to tackle. When individuals think about and reflect on their future with respect to financial growth and stability, they are caused to deal with so many “what if” scenarios. What should I do if rates sharply rise? How about if they fall? How can I feel secure about my investment portfolio in an uncertain economy? How does the local economy factor into my decision making – should it? What investment strategy is appropriate given my current life stage and goals? How should I be looking at protecting my assets and ensuring an income stream consistent with my lifestyle choices? WOW – so many important questions to ask that must be answered.
Forward thinking community banks like DNB First (DNBF) are expanding the services they provide to include wealth management, trust services, investment planning and insurance. These services are delivered to bank customers through licensed and professional, experienced advisors who have a deep and core understanding of their client’s needs. These days, wealth services provided by some community banks are delivered with similar platforms that clients may experience when dealing with a major, national banking or financial services giant. The capacity for community banks to offer these services has improved dramatically. This has created an environment where customers of smaller banks can experience services consistent with some of the major players.
The big difference of course, comes down to the relationship that community banks enjoy with their customers. Large banking giants drive “referral” programs where customer information is shared from one part of the operating entity to the other. This creates an environment where the main relationship manager becomes secondary to the wealth or investment professional. Effective community bank models “introduce” or INCLUDE the professionals into an already effective rapport with the bank relationship manager. Like the song says, “You want to go where everybody knows your name.”
The subtle word difference between referral and introduction is actually an important distinction to make. When working with your bank or financial institution, find out if you are being “referred” away to someone else, or if a licensed investment professional is being “introduced” or included in an already effective banking relationship. It makes a huge difference in how you experience your bank!
Executive Leader
Mobile Banking – A Leader with Community Banks
Banks large and small are offering many new and innovative products and services to make banking easier. One of the new popular services available out in the market is mobile deposit. This service provides the functionality to make a deposit to your bank account using a smart phone. Recently, DNB First, a leader in the community, began offering this service to its customers. It supports the bank’s commitment to convenience, making banking easier, saving time.
Mobile Banking usage is expected to grow to 53 million active users in 2013, up from 10 million active users only 3 years ago. This growth provides thousands of banks and millions of customers to communicate and transact business in new and innovative ways. It’s important for financial institutions to adopt policies, practices and procedures to address changes in technology and the impact on customer service. To be a leader in the financial services industry, community banks must meet and exceed the expectations of customers focused on mobility.
Gratitude – the highest ROI management tool?
Recently, I read an article written by the CEO of Linkedin about a management tool that provides the highest return on investment, and is a proven driver of workplace productivity.
What was that tool you say? “GRATITUDE”. Yes, gratitude… How simple – authentic and genuine gratitude was named as the most effective management tool providing the most significant return.
I’ve always believed that happy, and engaged team members are more productive, provide better service and generate more revenue for the organization. It seems so natural that gratitude should be named as a motivator and driver of outstanding leadership in breakthrough performance.
So in this season of thanks and appreciation, it is very appropriate to leverage this great tool and give thanks for our many blessings at home, out in the community, and also to those we spend so much time with at work. When you see it, say it! Share your thanks and appreciation. The next time someone compliments you on a job well done, try grounding yourself from the feet up, look the person straight in the eye, and let them know how much it means to you.
That’s an outstanding return on an important investment.
Fortunate Families with a Homemade Thanksgiving Dinner
Fortunate Families with a Homemade Thanksgiving Dinner
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Released 6 November 2013 PHILADELPHIA (November 6, 2013) – Each and every year, Thanksgiving gives us an opportunity to enjoy food and fellowship with those closest to us. However, for those less fortunate, the comfort of a warm holiday meal for their families can seem like a distant dream.
“We want people to enjoy time with family during the holiday,” said Dixon. “If we can add a sense of care and family to help people enjoy their holiday, then we’ve succeeded.” Turkey dinners will be prepared at USDA-certified kitchens and will include 6-7 ounces of meat per family, including some extra turkey for families to eat as leftovers the next day. Olsen will commence cooking the turkeys the Monday prior to the holiday. After being prepared, the meat will be stored in cooling trucks to remain fresh for the big day. Leading up to the week of Thanksgiving, vouchers for the free meals will be distributed to those in need from Salvation Army corps community centers across the city. Each center has been given approximately 100 vouchers for families and individuals in their community. Come Thanksgiving Day, those with vouchers will head to one of two designated community centers, The Salvation Army Philadelphia Temple Corps Community Center, 1340 Brown Street, or The Salvation Army Grays Ferry Community Center, 3225 Reed Street, to pick up their meals from 9 a.m. to 1 p.m. Upon arrival, families will be escorted by a personal volunteer, in an effort to provide each family with a sense of personal care. “We like the idea of someone catering to these families,” said Dixon. “It makes them feel special, and part of a bigger family.” The volunteers will guide each family to a series of food stations, where they will pick up the fixings and sides for their meal, from gravy, rolls, and cranberry sauce to bread and mayonnaise for leftover turkey sandwiches. The families will then pick up containers with stuffing, green beans, and mashed potatoes before receiving their turkey. In addition to the many individual volunteers offering their assistance, corporate partners ACME Markets and Keystone First have provided support both financially and with volunteers of their own. With such sweeping enthusiasm leading up to the event, Dixon hopes this will be the first of many Thanksgiving events in the future. “Hopefully it catches on throughout the city in years to come,” said Dixon. “This event isn’t about what The Salvation Army has done, it’s about the power of people willing to help other people in need.” All members of the community who are interested in being a Thanksgiving meal recipient can go to their local Salvation Army corps community center to receive a voucher. Anyone interested in contributing as a volunteer may contact Gary Klemowicz at 215-717-1190 for further details. Be a LEADER – please join me in supporting our local Salvation Army. Doing the most good in Philadelphia! Vince Liuzzi |
Giving thanks to the FRC
Nearly 20 years ago while living in Phoenix, I was introduced to the Franciscan Renewal Center (FRC): http://www.thecasa.org/ Well known by the community simply as “The Casa”, FRC is a Catholic church and a spiritual, faith based center in Scottsdale, Arizona providing a broad range of programs and services ranging from counseling, retreats, workshops, classes, prayer and renewal. The values are centered in the mission of the Order of Friars Minor, commonly called simply the “Franciscans”. They seek to follow most directly the manner of life that Saint Francis led.
The mission of the Casa is, “To present programs that inspire Catholics and non-Catholics alike to keep focused on God as the center of all life. We desire to bring comfort to the sorrowing and discomfort to the too comfortable. Our message, like the message of St. Francis, is rooted in the Scriptures and intentionally provokes more questions than gives easy answers. Please join us and bring a friend.”
Some of my fondest and most meaningful moments happened at the Casa. It is a leader in the community and truly a treasure in the Arizona desert.
Participate in a program or retreat today!
– Vince Liuzzi
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