I love top 10 lists, and came across this the one the other day. In this article written by Dave Ramsey from Success.com, you will find several simple reminders to think about when you are managing your finances.
Spend less than you earn. This one, simple practice will save you a world of trouble. As Dave Ramsey says, “act your wage.” Simple advice we all should follow. Check out the other easy and practical ideas Dave shares. Enjoy!
So often, consumers get focused on financial planning for retirement way too late. While it may seem years or even decades away, the truth is – you should start this process early in your income earning life stage. Start planning for retirement when you begin your career; not when you look to end it. Continue reading “Too young to be thinking of retirement? Think again!”
Yes it really is that time of the year. Millions of Americans will spend the next couple months preparing to file their tax returns. Undoubtedly, many of them will make the reactive decision to open an IRA account through this process. The April 15th deadline for IRA contributions to be counted for the previous tax year is a big driver of this increase in activity. Continue reading “Start your IRA planning now!”
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
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.
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
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
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.
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.
Community Broker News and Views 