Getting older, as with any other point in life, has its ups and downs. On the one hand, seniors tend to care less about what other people think and they’ve gained a lot of life experience that can be highly beneficial. On the other hand, retirement brings with it a whole new set of financial circumstances that can take some adjusting. Your elderly parents may benefit from your help in managing their finances.

Prevent Them From Running Out of Money

Though the coronavirus pandemic created an exception, life expectancy has been trending upwards for the past several years. While that is generally a good thing, that does put people at a greater risk of outliving their money. It can be easier to do than you might think, especially if you don’t keep tabs on what you have left in different retirement accounts. Being involved in your parents’ finances opens the door for conversations about how much money is available. It can increase spending accountability and help monitor costs so that they don’t outpace the available funds.

Protect Them From Financial Scams

There are some pretty shady people out there who target elderly individuals like your parents for a living. Because of the kind nature of many elderly people, they can become easy prey for scammers. They aren’t the only ones to watch out for though. Predatory lenders target the most desperate borrowers they know they can take advantage of. Fortunately, if you can establish a relationship that allows you to talk openly with your parents about their finances, you can help them avoid getting caught up in financial scams.

Preparing for Problems

No one wants to think that they could become incapacitated and unable to handle their finances, but it does happen. The risk of suffering a stroke increases dramatically with age. There is also an increased risk of mental impairment due to dementia. If you can get involved and help your parents manage their finances early on, it helps set the groundwork for you to take over for them if they can no longer manage their finances on their own.

Helping your parents manage their finances may seem a little backward, but it can do a lot of good. You can help them avoid running out of money, protect them from financial scams, and prepare for situations that may cause them to lose the capacity to handle things on their own. Start the conversation early on so you can lay the groundwork to make it easier to be involved down the road.

Read this next: More People Are Concerned About Their Financial Future: 4 Steps to Protect Yours

Like many others, you may have found yourself setting various goals that you want to achieve in 2021. For a lot of people, those goals tend to be oriented towards personal health. There’s more to health than just your physical health though. There’s the mental component, of course, but there’s also personal financial health. One of the things you can do to boost your financial health is to increase your credit score.

Raise Your Credit Limit

If you’ve ever found yourself wishing you had a higher credit limit, increasing your credit score can be the answer. Having a higher credit limit gives you more resources you can use if the need arises. Additionally, you have more wiggle room in your credit utilization with a higher credit limit. Your credit utilization is one of the five things that are used to determine your credit score. The general recommendation is tokeep your credit utilization below 30%. With a higher credit limit, you have a greater degree of flexibility in how much you can spend while still keeping your credit utilization low. This, in turn, helps improve your credit score.

Qualify for Financing

When you have a higher credit score, lenders will perceive you to be capable of making smart financial decisions and good at managing money. Therefore, they are more comfortable with lending you more of their money. This is especially useful if you find yourself in need of a personal loan. There are many reasons why you might need a loan in an emergency. With a better credit score, you have a better chance of qualifying for the financing you need to cover emergency expenses.

Reducing Your Interest Rate

Nothing is free in life, especially when it comes to money. The interest that comes with loans and credit cards is the price you pay for borrowing money. It’s how those you borrow from make a profit. The interest rate you have to pay is impacted by your credit score. The better your credit score, the less of a risk you are perceived to be as a borrower, and the lower your interest rate is likely to be. If your credit score is low, your perceived risk is higher, and you’re more likely to be charged a higher interest rate. It’s an attempt by the business to make sure they can recoup as much of their money as possible, should youdefault on the loan.

Increasing your credit score is an incredibly worthwhile goal that you should make a priority in 2021. Doing so can raise your credit limit, allow you to qualify for financing, and can land you a lower interest rate when you borrow money. It’s not going to be an overnight change and will take time and effort, but the benefits of having a high credit score are worth the work.

Read this next: Most Americans say they're optimistic about a brighter financial future in 2021

More people are concerned about their financial future: 4 steps to protect yours

(BPT) - Finances are consistently a top concern for many Americans, with “saving money” a top-10 most common New Year’s resolution. This year, Americans are more concerned than ever before due to the uncertainty created by the COVID-19 pandemic.

USE Credit Union reported that more than 75% of non-transactional calls received since the start of the pandemic were from members concerned about their financial future, citing economic hardship as the primary reason for concern. The economy and job market remain in a state of constant flux, which is causing many families to worry about their ability to pay an unexpected bill, continue to pay off student loans, mortgages or credit card debt, or save money for the future.

“Saving money is more than just putting spare change into a coffee can, or simply ordering takeout less often,” said Jeff Schroeder, vice president and chief product officer at Mercury Insurance. “Sure, those things can add up over time, but people may find that their greatest savings can come from taking a look at the necessary expenses they pay for every month, such as insurance.”

Schroeder recommends these four tips to help protect your finances in the coming year:

1) Check your auto insurance coverages. There’s no reason to pay for more coverage than you need, but being underinsured can leave you exposed. “The cost of repairs after a collision has grown in recent years, as a result of more crossovers and SUVs on the road, and more technologically advanced vehicles,” said Schroeder. “Beyond paying for more expensive repairs if your insurance doesn’t cover it, if you’re underinsured, you may also be responsible for paying out of pocket for medical bills, which could potentially devastate savings for a down payment on a house, your child’s college tuition or a future vacation. It’s vitally important to make sure you have the right amount of auto insurance coverage to protect against unforeseen events.”

2) Know what your homeowners insurance covers. First and foremost, be sure to read your policy so you’re clear about what it does and doesn’t cover. It’s a good idea to check in with your insurance agent each year to ensure you have adequate coverage, especially if you’ve made renovations, own collectible or valuable items, or live in an area that’s prone to flooding or earthquakes, as standard homeowners insurance policies typically don’t cover these situations. Also, maintain a home inventory to make sure to have an accurate record of your belongings and property.

3) Be aware of potential gaps in coverage. A standard homeowners insurance policy often doesn’t cover mechanical failures to your home’s appliances, HVAC or other essential systems, nor does it cover a break to service lines on your property that supply your home with electricity, gas or sewer functions. In either of these scenarios, this means you would be responsible for writing a big check to a repair company or having to purchase a pricy replacement. However, adding home systems protection and service line protection endorsements can help provide coverage for costly repairs and replacements, saving money and your peace of mind. Pennies spent now can save you thousands of dollars later.

4) Regularly shop for the best coverage and price. Insurance prices can vary significantly from company to company, so it’s a good idea to take a few minutes to see if you’re getting a good deal. Shop around at least once a year — making sure to look for the exact same coverage limits — to see if you can find a more affordable rate.

“Often, regional insurers like Mercury Insurance are more attuned to their policyholders' needs and can offer better rates,” Schroeder added.

The most effective way to make sure your finances are minimally impacted by insurance costs this year is to speak to an independent insurance agent. They can help make sure you have the proper amount and type of coverage to keep yourself, your family and property protected.

Tips to help make the most of your health plan in 2021

(BPT) - Last year was a difficult year as the COVID-19 pandemic swept through our country, impacting families and communities nationwide. The health challenges of the pandemic also provided a crucial reminder about the importance of health care.

For many Americans, new health plan benefits began in January. If this is your situation, now is the perfect time to learn how to maximize this year’s health benefits, which may help improve your health — and possibly save money too.

Ann Marie O’Brien, R.N., national director of health strategies at UnitedHealthcare, provides the following tips to help you take charge of your health and get the most out of your plan in 2021:

• Understand health insurance concepts. Review common health insurance terms like premium, deductible and copay. This may help you better understand your plan and how your costs are calculated. Insurance plans differ depending on the providers you see and how much you pay for services. Remember, in-network providers are contracted with your health insurer to provide services at a lower cost, so consider checking whether your current health care providers are in your network before making an appointment. Out-of-network providers may cost more and lead to higher out-of-pocket costs for you.
  
  
• Schedule preventive services. Be proactive by taking advantage of preventive services that are often covered by your insurance, like an annual physical, mental health screening or flu shot. Scheduling these appointments with your primary care doctor may help prevent health problems before they arise.
  
  
• Check your behavioral health coverage. Some insurers, such as UnitedHealthcare, offer behavioral health care programs that can range from treatment for substance use, eating disorders, anxiety and stress, with a goal of helping to improve your overall well-being. For example, an on-demand emotional support mobile app called Sanvello^® is available to help you cope with stress, anxiety and depression.
  
  
• Take advantage of telehealth visits. A popular health care choice, especially during the COVID-19 pandemic, has been telehealth or virtual visits, which enable people to connect 24/7 with a health care provider via a smartphone, tablet or personal computer. They may be an easier, more affordable way to talk to a doctor about common health issues. Log in to your health plan’s member portal to check availability.
  
  
• Explore your options for wellness programs. Many health plans now offer discounts and other incentives for working out, walking, signing up for an online health coaching program, lowering your cholesterol, or avoiding nicotine. Incentive-based wellness programs are designed to reward people for making healthier choices. Check with your insurer or employer to see what programs are available to you.
  
  
• Review your prescription coverage. Check to see what’s covered under your prescription drug plan by logging into your health plan’s member portal or by calling the phone number on your ID card. Your plan will show medication costs and coverage and help you locate a network pharmacy. It also helps to ask about generic medication options. In many cases, generic medications contain the same active ingredients as their brand-name counterparts, and they may save you money.
  
  
• Apply for a child medical grant. Some charitable organizations, such as the UnitedHealthcare Children’s Foundation (UHCCF), provide child medical grants to middle- and low-income families who don’t qualify for Medicaid. Families can receive up to $5,000 annually per child ($10,000 lifetime maximum per child) and do not need to have insurance through UnitedHealthcare to be eligible.
  
  Since 2007, UHCCF has awarded more than 25,000 grants valued at over $54 million to children and their families across the United States. Families can read eligibility criteria and complete an online application at www.uhccf.org.

Becoming familiar with your new health plan — especially at the start of a new year — is one way to help you be proactive when it comes to your health. For more health and wellness information, visit UHC.com.

Tax season 2020 will look different: Here's how to prepare

(BPT) - It’s no secret that 2020 has been a tumultuous year. Due to the COVID-19 pandemic, many Americans found themselves out of work — at least temporarily — and received unemployment benefits. Others may have experienced employment changes, like working from home or taking on multiple jobs. All of these factors will have even more of an impact come time to file income taxes on tax day, April 15, 2021.

“For many, the 2020 tax season will likely look different,” says Mark Steber, Chief Tax Information Officer at Jackson Hewitt Tax Services. “The pandemic brought unexpected, overwhelming changes.”

To help you prepare and get the maximum tax refund you deserve, Steber offers the following tax tips.

1. Understand how unemployment benefits work

If you received unemployment benefits this year, it may have been for the first time. Make sure you’re aware of how they affect your taxes.

Unemployment benefits are taxable and must be reported to the IRS on your tax return. Taxable benefits also include any special compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act earlier this year. That means if you did not withhold enough taxes from your unemployment benefits, you could see a big tax bill or a much smaller tax refund than you normally receive.

Unemployment benefits can affect tax credits. Unemployment is considered unearned income, so it won’t count toward certain credits. For example, you must have earned income to qualify for the Child Tax Credit or the Earned Income Tax Credit. Additionally, your adjusted gross income must be below certain levels to get certain credits.

2. Set money aside to cover unexpected taxes

If you received unemployment benefits and did not withhold any federal or state income tax, you’ll need to pay tax on that money. To prepare, consider setting money aside now to cover those taxes on your 2020 return and brace yourself for a much smaller refund or no refund at all this tax season.

3. Take advantage of possible deductions

Every taxpayer will get a charitable donation deduction for 2020. Make a list of any IRS-approved donations you made this year and locate any receipts. Whether itemizing or taking the standard deduction, under the CARES Act, all taxpayers are eligible to deduct up to $300 worth of monetary donations to qualified organizations.

And while many Americans have been working at home for months, a home office deduction is not guaranteed. The home office deduction is only available to those who are self-employed.

4. Consider major life changes

Life goes on, even during a pandemic, and life changes can bring sizeable tax implications. Some changes that cause the biggest impact include getting married or divorced, having a baby or adopting a child, buying or selling property, retiring, or starting a business. If you experienced any of these events in 2020, know that your return will look different.

5. Keep track of important documents

Even if your taxes won’t be affected by unemployment, make sure you gather all your documents, such as W-2 forms and 1099s for interest dividends and even retirement distributions. Remember to include the Notice 1444 you received with your stimulus check for your 2020 tax records. Collect your charitable contribution totals, mortgage interest, property taxes you’ve paid, and any additional state and local income taxes paid for the year. If you were furloughed and able to pick up a temporary job, gather your W-2s for each job you worked. If you worked a side gig, make sure to keep a record of your income, the miles you drove, and any additional expenses. And if you’re not filing single, be on the lookout for family members that may have been impacted to make your tax return more complicated.

No matter your 2020 situation, follow these tips to prepare for any unexpected tax implications. For more information and help during the 2020 tax season, visit jacksonhewitt.com.

Most Americans say they're optimistic about a brighter financial future in 2021

(BPT) - As we enter 2021, here’s one more essential item to put on your list in addition to canned goods and masks: a financial checkup. According to Fidelity Investments’ 2021 New Year Financial Resolutions Study, more than two-thirds of Americans experienced financial setbacks in 2020, often from the loss of a job or household income or another emergency expense. Even those lucky enough to maintain their income still may have had to tap savings to help others, as nearly one in five attribute their financial setback to providing “unexpected financial assistance to family members or friends.” Despite this, many Americans remain optimistic and determined to make their money work harder in the New Year, with 72% confident they’ll be in a better financial position in 2021.

“Americans are clearly ready to leave 2020 behind and start 2021 off on the right foot, including when it comes to their finances,” said Stacey Watson, senior vice president with oversight for Life Event Planning at Fidelity Investments. “This year’s top financial resolutions are consistent with what we’ve seen in the past, however, what makes 2021 unique is how people will achieve them, given the financial pressures and major life events many continue to experience throughout the pandemic.”

This year, 65% of Americans are considering a financial resolution for 2021, which is down marginally from last year (67%), but still quite strong given the headwinds experienced by so many families. Younger generations appear to be more committed to actively improving their finances in the new year, with 78% of all Gen Z and Millennial respondents considering a financial resolution compared to 59% of all Gen X and Boomers.

“Younger generations are building up their careers, families and finances, so it makes sense they have important financial resolutions to make. Still, Gen-X-ers and Boomers also experienced significant financial challenges in 2020 and may want to consider making some resolutions of their own to build a stronger financial future particularly when it comes to retirement readiness,” continued Watson.

Making a resolution, and checking it twice

Resolutions are an important start, but the key is to keep good financial routines going strong well beyond January — and ultimately have them become life-long habits. The study reveals the key to a successful resolution is the good feeling of making progress and setting clear and specific financial goals. Having someone to help keep you on track and hold you accountable also plays a role, as nearly one-in-five indicated this was a major reason they were able to stick to a financial resolution last year. In fact, more than three-quarters (77%) of people working with a financial professional were able to stick to their financial resolution in 2020, compared to just half (50%) of those who did not work with one.

Putting 2020 in the rearview

To help build a better financial future, consider these three things you can do to move forward:

• Begin with a budget
• • Of those who said they were in a ‘better’ financial situation this year compared to last, more than one in five attributed the success to budgeting better. With so many online tools to make tracking your spending and savings easier, including Fidelity’s Budget Checkup, there are simple ways to create and stick to a budget aligned with a ‘50-15-5’ guideline.
• Replenish that rainy-day fund
• • More than 8 in 10 Americans say they’ll build up their emergency savings in 2021, an important money move considering that many may have tapped into their stash of cash due to financial setbacks in 2020.
• Find new sources of income
• • Nearly two-thirds say they plan to find new ways to make money in the new year, whether with a side hustle, selling items online or getting a part-time job. And with 30% of Americans planning to ‘declutter’ their homes in 2021, there’s a good opportunity to find more than just loose change in those cushions and closets.

To get more tips for making and keeping your financial resolutions, visit Fidelity.com.

This study presents the findings of a national online survey, consisting of 3,011 adults, 18 years of age and older. The generations are defined as: Baby Boomers (ages 56-74), Gen X (ages 40-55), millennials (ages24-39), and Gen Z (ages 18-23; although this generation has a wider range, we only surveyed adults for the purposes of this survey). Interviewing for this CARAVAN^® Survey was conducted October 14-21, 2020 by Engine Insights, which is not affiliated with Fidelity Investments. The results of this survey may not be representative of all adults meeting the same criteria as those surveyed for this study. Margin of error is +/- 1.79% at the 95% confidence level. Smaller subgroups will have larger error margins.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
© 2021 FMR LLC. All rights reserved.
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The sun is setting on swiping at the pump

(BPT) - Among its downfalls, 2020 was a fraud-heavy year. However, there is one type of fraud that can be thwarted in 2021: pay-at-the-pump fraud using cloned payment cards, also known as counterfeit fraud. This happens when cybercriminals skim cards and steal payment card data at fuel pumps or buy them from the dark web, print them onto counterfeit payment cards, and use them at older fuel pumps that do not have an EMV^® chip or contactless card reader.

And pay-at-the-pump fraud is rampant. Analysis from Mercator Advisory Group and Transaction Network Services shows that fraud losses on automatic fuel dispensers (AFDs) this year is estimated to be $17,315 per site.

This type of fraud is prevalent because most gas stations still use outdated fuel pumps with point of sale (POS) systems that read the magnetic stripe on the back of a card instead of POS systems that use more secure chip and contactless card readers.

It is time for station owners to upgrade their fuel pumps to protect themselves and their customers.

Upgrading these fuel pumps has been a long time coming. Awareness about the intent to shift to chip cards for secure payments started in 2011 and the date for fraud liability to shift from financial institutions to fuel merchants has been pushed back multiple times since then.

Visa is trying to stop fraudsters from taking advantage of consumers and merchants this way, and is encouraging fuel merchants to upgrade to EMV chip card and contactless readers at the pump — the most efficient way to prevent criminals from successfully using counterfeit payment cards — before the liability shift date of April 17, 2021.

“In addition to consumers having an extra layer of protection, these upgrades benefit gas station owners by removing fraud dollars that impact their bottom line,” said Julie Creevy Scharff, vice president of consumer products at Visa. ”Based on Visa data, counterfeit fraud dollars decreased 87 percent among chip-enabled non-fuel merchants in the U.S. in March 2020 compared to September 2015, when the liability shift occurred for that community.”

Visa believes a similar reduction in counterfeit fraud perpetrated at fuel pumps can be experienced by fuel merchants if they embrace chip card and contactless card readers at the pump.

Fortunately, there is still time to upgrade. Merchants should contact their payment or fuel pump provider so consumers can take advantage of a chip card reader with their chip card or use contactless payment when they fuel up.

When you are financially secure, you may be excited to spend money on your dream car, concert tickets, or other short-term expenses. While these are exciting purchases, they may not help you in the long-term. You should take smart and thoughtful steps when you have a healthy bank account.

Save More for Retirement

The last thing you want is to spend the bulk of your money right now, and leave nothing for your future self. Saving money for retirement should be on your mind early in your life. However, if you have not thought about it until later, you still have time to prepare, so don’t fret.

You should create and gradually contribute to a 401(k). Find a plan that works best for you and your future family. Some employers will also add to your 401(k) depending on the company benefits you receive. Shop around and see what retirement benefits you can find.

Buy a Home

Buying a home is the biggest and most common investment for most Americans. If you are financially stable, there is no better time to invest in a home. Based on your annual income, you can look for homes in areas you can afford. Ask friends and family about real estate agents you can work with—or just check online reviews.

There are plenty of reasons to buy a home now. The current economic environment includes record-low interest rates. You can find many developing suburbs being built right now that will attract young families and strong communities. Homes are perfect for raising a family.

Make Investments

Investing in other companies and services is also a great place to put your money. Investing in the stock market can raise your economic standing and potentially help you retire early. There are some things you need to be careful of, however.

Do not just invest in “pie in the sky” companies—businesses that offer you high rewards for high investment. Buy stock in companies that will see smaller, but safer, returns. You should also invest in precious metals. Diversifying into gold and silver will help your money increase if there is an economic downturn. Metals retain their value or increase in value during catastrophe.

Making smart money moves is not just important for people struggling to get by. Choosing practical, smart investments and financial strategies is crucial throughout your entire life. Look at your future plans, and decide what is important to you. Making smart investments with your money will save you headache and uncertainty in the future.

Read this next: Why Now May Be the Right Time to Buy Your First House