Securing Your Financial Future - Livingston Enterprise

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Securing Your Financial Future A special publication of • Renters insurance • Saving for your child’s education • Using your tax refund • Money management tips • Investment mistakes to avoid

Transcript of Securing Your Financial Future - Livingston Enterprise

Securing YourFinancial Future

A special publication of

• Renters insurance• Saving for yourchild’s education

• Using your tax refund• Money management tips

• Investment mistakes to avoid

2016 Securing Your Financial Future q Page 2

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Agents: Renters insurance offers multiple benefitsBy Jasmine Hall Enterprise Staff Writer

Life, homeowners, health and auto insurance policies are all pretty com-mon coverages people use to protect themselves, but many people may be unaware of renters insurance and the benefits it can offer.

At its foundation, renters insurance covers basic property kept inside a residence from incidents such as water damage, theft and vandalism. But what renters may not know is the inexpen-sive coverage goes beyond protection of property inside a rental and extends to protection of valuables outside the home, while offering the additional benefit of personal liability coverage.

“It protects your personal belongings in the event of a fire or theft, or water damage,” Dean Hendrickson State Farm Office Representative Daryn Hendrickson said. “It’s very similar (to homeowners insurance). It’s the same perils that are covered under a home-owners policy for the most part.”

Personal items outside the rental property may also be covered under a policy, such as property that is stolen while in a vehicle or while inside a hotel room.

“People think its coverage for just where you’re renting,” Hendrickson said. “… But it’s not limiting you to

inside the house, it’s (also) where you’re going.”

Hendrickson recalled one renter who used his insurance when he lost all his possessions during the 2012 Pine Creek fire. Hendrickson said the renter was able to receive money almost instantly because of his coverage.

“We saw the actual devastation of somebody losing everything that they had in the Pine Creek fire,” Hendrick-son recalled. “Fortunately, we did have renters insurance for one of the folks. And it was nice having the claims rep-resentative meet him in our office the very next day and cut him a check for $5,000 right up front.”

Hendrickson explained renters insurance goes beyond personal prop-erty and protects renters from person-al liability such as an renters’ negli-gence. A renter’s negligence incident

can include accidental fire and a medi-cal-related accident that occurs at the residency.

“You’re having a little get together and somebody fell down and had to get stitches,” he said as an example. “It would provide (the injured person) with a certain amount of medical pay-ments coverage as well.”

Not only is renters insurance a good idea because of its wide scope of cov-erage but it is also inexpensive. Although premiums are determined based on desired coverage, Hendrick-son said State Farm’s monthly premi-um for the lowest coverage of $25,000 in personal property could be as low as $9.58.

“For the money that it saves you on the auto side of things, to the money it’s going to cost you to have renters insurance, having it save you from

devastation if you lose everything you’ve got, it’s definitely worth it,” he said.

Leavitt Group Account Manager and Representative Christina Boyle also agreed a renters insurance monthly premium is affordable.

She said at Leavitt Group, the basic renters insurance coverage of $25,000 in personal property and 100,000 in personal liability could be as low as $12.50 per month.

“It’s inexpensive,” she said.In addition, having multiple policies,

such as auto insurance combined with renters insurance, can offer a renter additional discounts. For example, Hendrickson said adding renters insur-ance in addition to auto insurance could result in $40-$50 in savings for six months, which means the renter would be ultimately paying around $2 for their renters coverage.

“It saves you a ton of money on your auto insurance,” Hendrickson said. “… So if you look at the cost of renters insurance per year, and you’re saving 40-50 per six months on the auto insur-ance, you almost get renters insurance for next to nothing… That’s well worth having $25,000 in coverage for your things.”

“For the money that it saves you on the auto side of things, to the money it’s going to cost you to have

renters insurance, having it save you from davastation if you lose everything you’ve got, it’s definitely worth it.”

— Daryn Hendrickson, State Farm Insurance

See Insurance, Page 5

2016 Securing Your Financial Future q Page 4

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Save now for children’s collegeBy Samantha Hill Enterprise Staff Writer

Even in the first year of life, parents begin to save for a child’s financial future; whether it be college or emergency funds, preparation is key.

When creating the future sav-ings plan for the child, there are a few options with different penalties and taxes but all help to assist the children after they become an adult.

Financial advisor for Edward Jones Matt Blades said he rec-ommends starting early with the child to accrue more long-term savings.

Blades said he often recom-mends the 529 plan to his cli-ents.

The account is a savings plan for children going to college and can be accessed once they turn 18.

According to Blades, the account is a tax shelter for the time it is growing and can be distributed tax-free.

He also said that areas, including Montana, have estab-lished that these accounts can

be set up anywhere around the country, instead of applying to only one state.

A possible negative aspect of this account is that the receiver of the funds must use it for col-lege or post secondary related expenses or the person who set up the account will face a 10 percent penalty on any of the interest earned.

In contrast, American Bank Livingston Branch Manager Andy Turner said he recom-mends the Montana Uniform Transfers to Minors Act account for clients.

A UTMA account is a savings account parents or others set up that the child will receive after they turn 21. Some of the benefits of the UTMA account include after the child has access to the account they can use it for any kind of expense, not just college.

Once the funds are set aside for the child, the person who set up the account may not get the money back, even in the event of financial struggles, according to a financial man-agement packet from Montana

State University Extension. The possible negative aspect

of the UTMA is that the money may be taxed according to the parent’s income.

Turner also recommended to people who maybe want some-thing a little simpler would be to create a basic savings account and put the child on as a beneficiary.

“This way the child can receive the funds if something happens to the parents,” Turner said.

A savings account would be subject to any other account penalties such as fees and tax-es but the person does not have any income requirements.

When setting up an account, people should talk to a banker or a financial advisor about their options and their ultimate savings goals.

Any possible tax benefits or penalties should be discussed with a tax advisor.

Whether a person sets a sim-ple or a complex savings account with the purpose of preparing their child for the future, it’s good to have a plan.

Insurance, from Page 3

“If you have renters insurance we can package them together,” Boyle said. “So it works really well for the renter savings wise.”

Both insurance officials said additional savings can result from paying renters insurance premiums as it can help improve individuals’ relationships with insur-ance companies, which can play a role in potentially lowering other insurance premiums — such as home-owners insurance premiums — in the future.

“It can help you down the road,” Boyle said. “You’re establishing a relationship with that insurance compa-ny and that’s really beneficial.”

“You start building up claims, free longevity with that particular company,” Hendrickson said. “… It defi-nitely helps you out in terms of pricing.”

Both Hendrickson and Boyle said the practice of requiring renters insurance in rental agreement con-tracts, as well as renters opting to have the coverage, has been increasing in Park County but it is still not as common as surrounding areas such as Gallatin County.

“I think there should be more awareness out there for it,” Boyle said. “(But) I think more and more renters are realizing that it’s so affordable.”

“We’re seeing a lot in Bozeman,” Hendrickson said. “… It’s definitely becoming something you’re going to find in a lot of contracts when you rent a place.”

Boyle said renters insurance is mutually beneficial for landlords as they also benefit from the incident pro-tection in the event of a situation or accident. She encourages landlords to require renters insurance as part of the rental agreement.

“It’s another layer of protection between whatever liability takes place at the renter’s apartment or home and the owner of the property,” she said. “… It’s so affordable its not like you’re putting a large burden on your renters by requiring them to have renters insur-ance.”

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2016 Securing Your Financial Future q Page 6

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(Livingston) - As an investor, how can you avoid making mistakes? It’s not always easy, because investing can be full of potential pitfalls. But if you know what the most common mistakes are at different stages of an investor’s life, you may have a better chance of avoiding these costly errors.

Let’s take a look at some investment mistakes you’ll want to avoid when you’re young, when you’re in mid-ca-reer, when you’re nearing retirement and when you’ve just retired.

• When you’re young Mistake: Investing too conservatively (or not at all). If you’re just entering the working world, you may not have a lot of money with which to invest. But don’t wait until your income grows — putting away even a small amount each month can prove quite helpful. Additionally, don’t make the mistake of investing primarily in short-term vehicles that may pre-serve your principal but offer little in the way of growth potential. Instead, position your portfolio for growth. Of course, stock prices will always fluctu-

ate, but you potentially have decades to overcome these short-term de-clines. Since this money is for retire-ment, your focus should be on the long term and it’s impossible to reach long-term goals with short-term, highly conservative investments.

• When you’re in mid-careerMistake: Putting insufficient funds into your retirement accounts. At this stage of your life, your earning power may well have increased substan-tially. As a result, you should have more money available to invest for the future. Specifically, you may now be able to “max out” on your IRA and still boost your contributions to your employer-sponsored retirement plan, such as your 401(k), 403(b) or 457(b). These retirement accounts offer tax advantages that you may not receive in ordinary savings and investment accounts. Try to put more money into these retirement accounts every time your salary goes up.

• When you’re nearing retirement Mistake: Not having balance in your investment portfolio. When they’re

within just a few years of retirement, some people may go to extremes, either investing too aggressively to try to make up for lost time or too conservatively in an attempt to avoid potential declines. Both these strate-gies could be risky. So as you near retirement, seek to balance your portfolio. This could mean shifting some of your investment dollars into fixed-income vehicles to provide for your current income needs while still owning stocks that provide the growth potential to help keep up with inflation in your retirement years.

• When you’ve just retiredMistake: Failing to determine an appropriate withdrawal rate. Upon reaching retirement, you will need to carefully manage the money you’ve accumulated in your IRA, 401(k) and all other investment accounts. Obvi-ously, your chief concern is outliving your money, so you’ll need to deter-mine how much you can withdraw each year. To arrive at this figure, take into account your current age, your projected longevity, the amount of money you’ve saved and the estimated

rate of return you’re getting from your investments. This type of calcu-lation is complex, so you may want to consult with a financial professional.

By avoiding these errors, you can help ensure that, at each stage of your life, you’re doing what you can to keep making progress toward your finan-cial goals.

Submitted by Edward Jones

Investment mistakes to watch for —at different stages of life

Monday, February 15, 2016 O Our Presidential HistOry O Page 12016 Securing Your Financial Future q Page 7

Three tips for achieving financial wellness in retirement (BPT) - Financial wellness is central to retirement planning. Balancing financial priorities is like eating a balanced meal. When preparing for retirement, it is important to make a commitment to your financial health as you would to your personal health. By looking at one’s finances and establishing healthy habits early on, the more prepared you will be for life after retirement. Sixty-one percent of the general population and half of U.S. Latinos plan to rely more on personal savings than on Social Security income in retirement, according to a recent study conducted by Massachusetts Mutual Life Insurance Company (MassMutual). While Social Security plays a role in retirement planning, there are many other funding options to consider. Taking the rights steps at an early stage is key to achieving financial wellness after retirement. Here are three tips to help secure a healthy financial future:

Determine how much you will need. In order to create a solid retirement plan, it’s important to understand your current financial situation and determine how much you will need for

retirement. Know your income and expenses, and the value of your savings and investments. Then define your goals for both the present and retirement. Maybe you want to save for traveling abroad or for your children’s college education, while others prefer to have a part-time job or stay involved with the business they built. Make sure you conservatively estimate what you need with all these factors considered

Know the role of Social Security. Determining how much money you will need after retirement is the first step to knowing the role of Social Security for your overall

retirement plan. Just like with healthy eating, planning for retirement is about finding the right balance for you. This means asking yourself, how will Social Security fit into your overall retirement plan? The answer:

it should only be one part of your plan. While Social Security is a great supplement to your income, it probably won’t be enough on its own. So be sure to fill your plate with all sorts of healthy options for a well-balanced retirement. To help close the gap between savings and Social Security, consider other sources of income like regular contributions to your company

retirement account (being sure to maximize any employer match), external investments and annuities.

Plan ahead for health care. A study conducted by MassMutual found that 73 percent of retirees in better health say they feel financially secure compared to 51 percent of retirees in poorer health, and planning for the unexpected can help maintain peace of mind. One of the biggest curveballs in retirement can be related to the cost of health care. Be sure to carefully think through and consider your options for paying for health care in your retirement, which may include but should not be limited to Medicare, Medicaid and various forms of insurance. Maintaining financial wellness after retirement is all about keeping a good balance and knowing the different options that are available for savings and income. The biggest benefit in the end will be peace of mind and enjoying a comfortable retirement that will fulfill your needs and expectations. A financial professional can work with you to create a roadmap towards financial wellness.

Monday, February 15, 2016 O Our Presidential HistOry O Page 12016 Securing Your Financial Future q Page 8

Six smart ways your tax refund can help youget into your first new home

(BPT) - The average tax refund for the 2014 filing season was nearly $3,000 and the IRS doles out about 100 million of them every year, according to IRS data. If you’ll be getting a refund this year, instead of spending it on more stuff you don’t need, why not invest in your future and use your refund to help you make that first-time home purchase you’ve been dreaming about? “Your tax refund can be a great tool to help you progress toward homeownership,” says Eric Hamilton, president of Vanderbilt Mortgage and Finance, Inc. “You can use it in a number of ways to facilitate the home-buying process, from putting it toward a down payment on a new home to paying down high-interest credit card bills - a move that may help improve your credit score and borrowing power.” Here are six ways first-time homebuyers can use their tax refund to help them get into their new home:

1. Put it toward a down payment. The days of buying a house without any down payment are pretty much gone for most people. Depending upon the loan program, a down payment can be significant. The more you put down, the less you will have to borrow, and the less you’ll pay in interest over the life of your mortgage. You can open a separate savings account and use it to build your down payment fund and deposit your tax refund into it so you won’t spend it. Vanderbilt offers an online guide to down payments at www.vmfhomeloan.com.

2. Use it to improve your credit score. A good credit score can help you get the best possible mortgage offer, so put your tax refund toward actions that may help improve your score. For example, paying down high-interest revolving debt can help improve your credit score, so use your refund to pay off credit cards and avoid accumulating any more credit card debt while you’re saving toward your first home purchase.

3. Apply it to closing costs. When a home purchase is financed, closing costs like attorney’s fees, appraisal and inspection fees, title insurance, and escrow costs are typically charged and are not always permitted to be rolled into your monthly mortgage payment. Financing costs can be quite expensive and are required in addition to the down payment, and you may need to pay these costs in cash. Your tax refund can be a great way to help pay for closing costs.

4. Put it toward taxes and insurance. Once you own a house, you’ll need to pay property taxes on it and insure it. You can also put your tax refund toward paying these costs. Or, if your taxes and insurance are paid through your mortgage, use your tax refund to purchase additional insurance - and greater security - such as an umbrella policy. Consult your insurance agent to determine whether purchasing additional insurance coverage is right for you.

5. Use it to cover moving costs. Even if your entire home-buying process goes smoothly and you’ve done a great job of saving money and managing your finances, you’ll still face expenses associated with moving into your new home. Your tax refund can help cover the cost of renting a moving truck, purchasing packaging material, paying deposits to start utilities service and more.

6. Use it to build your emergency fund. Every homeowner should have an emergency fund - a savings account with a balance sufficient to cover several months’ of expenses, including your mortgage payment. An emergency fund can help protect you from financial issues if you lose your job or experience an unexpected expense, such as a major car repair.

NMLS Licensing DisclosureVanderbilt Mortgage and Finance, Inc., 500 Alcoa

Trail, Maryville, TN 37804, 865-380-3000, NMLS #1561, ( http://www.nmlsconsumeraccess.org/), AZ

Lic. #BK-0902616, Loans made or arranged pursuant to a California Finance Lenders Law license,

GA Residential Mortgage (Lic. #6911), Illinois Residential Mortgage Licensee, KS Licensed Mortgage

Co. (SL.0000720), Licensed by the NH Banking Department, Mississippi Licensed Mortgage Company,

MT Lic. #1561, Licensed by PA Dept. of Banking.

Monday, February 15, 2016 O Our Presidential HistOry O Page 12016 Securing Your Financial Future q Page 9

Tips on using a balance transfer to become debt free (BPT) - If you’re carrying a balance on your credit card, don’t worry - most Americans are too. In fact, the average U.S. household carries just over $15,000 of credit card debt, which isn’t a bad thing when managed properly. Let’s look at the big picture. You most likely have more than one credit card - your first card is from your college days, and the second one you picked up because it had travel rewards. After a few years of properly budgeting your finances and making payments on time, you’ve improved your credit score quite a bit. That first card you got in college with the high interest rate no longer makes sense to have as a tool in your wallet. Sounds like it’s time to consolidate your balances. Balance transfers allow you to take the balances on your existing cards and transfer them to another credit card, usually at a lower rate. This new lower rate helps to reduce your level of debt because more of your monthly payment will go toward paying off debt principal, rather than paying interest. “A balance transfer at a low rate makes it easier to pay down your balance, improving your debt-to-credit ratio as your balance decreases,” said Randy Hopper, a representative of a leading national financial institution.

Reducing your debt sounds great, but wouldn’t it be awesome to be debt-free? To truly benefit from a balance transfer, follow these simple tips:

Know when a deal isn’t actually a dealTypically, credit card issuers charge a fee associated with a balance transfer. This could be a flat fee per number of transfers, or percentage of the total balance you’re bringing over to the new card. “Keep an eye out for balance transfers with no fees, zero percent interest during the introductory period and a low rate after the intro period expires,” Hopper says. This is where you can really make a difference to your credit score, but make sure you select a card that will give you enough time to pay down your balance in full. Be sure to read the fine print on the zero percent offers, too. It could be in your best interest to choose a 2.99 percent APR that doesn’t have a balance transfer fee, over a zero percent offer with a three percent fee. In the long run, it could cost you more than you’re saving.

Consolidate from high to lowIf you’ve got several credit cards and have trouble managing payments, consolidate to one card. You can save money on interest by moving your higher balances into this new account

with a lower interest rate. Check the APR on all your credit cards to know which ones would be best for a balance transfer. “This is a great option for store cards that usually have high interest rates, where credit unions never charge more than 18 percent,” Hopper says. Once you’ve consolidated your credit card debt, avoid making purchases until your debt is paid down. Remember, your goal is to become debt free. Making any new purchases will start accruing interest immediately, which isn’t ideal.

Always pay on timeMake your payments on time or you could be hit with a penalty APR. Not only do missed payments negatively affect your credit score, but you could risk losing the low introductory rate as well. Forgoing your introductory period APR could mean missing your goal of becoming debt-free. “If possible, set up automatic payments along with alerts on your mobile device to ensure payments are made on time,” says Hopper. “Maintaining a healthy track record will boost your credit score.”

You’ll lose them if you don’t use themFinally, when your balance hits

zero, keep the account open. Doing so indicates your track record of reliability. As a general rule, credit cards that are in good standing over a long period of time positively impact your credit score. The longer these accounts are open, the better it is for your profile. If you’re looking for a lower interest rate, a simplified payment process, or both, balance transfers are for you. Reducing your credit card debt is within reach. With a good payoff plan and the right card, you could become debt-free sooner than you think!

(Livingston) - One of the most im-portant and rewarding aspects of our job as an insurance agency is to make sure our clients have a solid founda-tion in place to protect their financial future from devastation in lieu of an unforeseen event. Obviously, you are legally responsible to carry liability if you drive an automobile. If you have a mortgage you are required to purchase a homeowners policy by the bank, and with the new health laws you will be penalized if you fail to purchase a health insur-ance policy. Even though these insur-ance types are required, they provide very important coverage that protect some of the largest assets in a house-hold and helps protects individuals from being sued. You cover your car, your roof, your motorcycle, travel trailer, tools, guns, jewelry, etc. But what about your family? What type of plan do you have in place that makes sure that the ones you love will be able to pay the bills and debts you have, or provide for your income if something happens to you on your way home from work tonight? What about unmet medical costs or the cost of a funeral? The price for this type of plan de-

pends highly on age and your current health so the best time to buy life insurance is when you are young and healthy. It pays to plan early. Here at Dean Hendrickson State Farm, we take family insurance protection very seriously and we have a dedication to make sure our policy holders have adequate coverage to protect their loved ones in the event of an untimely death. State Farm offers a wide range of life insurance policies at competitive pricing and we are knowledgeable in determining the right policy and coverage amount for our customers. We feel that life insurance is one of the most important policies we can offer to someone and their family. No one can predict they will ever have an insurance claim on their car or home but I can assure you that at some point you will have a claim that warrants life insurance benefits and we want you to rest assured that your family will be financially taken care of.

Article submitted by Dean Hendrickson

State Farm agent

Is your life in order?

Monday, February 15, 2016 O Our Presidential HistOry O Page 12016 Securing Your Financial Future q Page 10

Good money management tips

The Affordable Care Act and taxes: What they mean to you

(Livingston) - What you don’t know about money can hurt you. If you don’t know how to create a budget, fix a poor credit rating or invest in a 401(k) plan, you’re missing out on op-portunities that improve your odds for financial stability and success. Financial literacy—an understand-ing of credit, banking, savings and more—offers you the tools and information you need to improve your financial health and wellbeing. Few of us go through life without ever applying for a loan or borrow-ing money. Borrowing and repaying money can help you establish a credit history that will make it easier to get financing when you need it. But use credit judiciously, so it can help, rather than hurt, your finances. These examples help illustrate the differ-ence between “good” and “bad” bor-rowing practices.

Good times to borrow You’re buying a home. To make a home purchase, most buyers need a mortgage loan. This type of financing is often considered good debt because a home is an investment that’s antici-pated to increase in value over time. The caveat? Look at your entire finan-cial picture before taking on a home loan, and make sure you’re buying a home you can truly afford. You’re adding to your education. If you’re finishing up an advanced degree or need additional training to

move ahead in your career, taking out a student loan can be a smart move. Shop around for the most favorable rates and repayment plan. You’re setting up a household. You’ll need some basics to begin with, such as a bed or a refrigerator. Essential appliances and furniture often can be purchased via installment financing through the store—but don’t overdo. Not everything in your first place needs to be new. Thrift stores, yard sales and family members can be good sources of basic furnishings that tide you over until you can afford the items you want. You’re consolidating debt. If you have several credit cards with high interest rates, it may make sense to get a loan to achieve a lower overall interest rate and smaller payments. But note: Put those cards away. Don’t rack up new charges as you’re paying off the consolidation loan.

Good times to wait You want to buy extravagant holiday gifts. It’s never a good idea to bor-row money—either through a loan or on your credit card—to spend above your means. Temper your generosity and choose meaningful, less expen-sive ways to remember others at the holidays. You’d like a nice wedding. Taking out a loan to put on a lavish ceremony and reception that you can’t truly afford could start your marriage out

under a financial eight ball. Scale back your plans to fit your budget and focus more on the occasion than the show surrounding it. You need a vacation. Travel typically costs more than you think it will, and if you have to take a loan simply to go on the trip, you’re better off finding more affordable ways to relax and recharge. Good rules of thumb Borrow only what you need. While it’s tempting to borrow more, you’ll end up having more to pay back and risk undermining your budget. Shop around for good rates. Com-pare interest rates and payment terms. If you have a good credit score, you may be able to negotiate a better offer. Pay off credit card balances every month. Carrying a balance means you’ll pay more for every purchase you make, in the form of interest charges on the amount. Check your credit report once a year. Knowing your credit score may help you secure more favorable rates. Plan for emergencies. We’ve all been faced with expenses that can’t be put off― — the car needs a new transmis-sion or the plumbing needs more ex-tensive work than you were expecting. Find out how to plan ahead for these unwelcome surprises and keep your budget intact.

Sources for improving your financial literacy Go online to find resources that can help boost your financial knowledge. MyMoney.gov, for example, offers basic financial information gathered from a wide array of sources. Take a class or workshop about a financial topic that interests you, appropriate to your level of financial knowledge. State Farm® partners with programs around the country that promote financial education, including the State Farm Financial Literacy Lab at Florida International University. Financial professionals are in the business of helping people manage their money. The National Association of Professional Financial Advisors can help you find a professional in your area. Visit statefarm.com® to run the numbers. State Farm offers a variety of online financial calculators that can help you manage your money. Neither State Farm nor its agents provide tax, legal, or investment advice. Please consult your tax, legal, or investment advisor regarding your specific circumstances. - See more at: https://learningcenter.state-farm.com/finances-1/few-of-us-go-through/#sthash.mWnzbuS2.dpuf

Article submitted by Sarah Skofield,State Farm agent

(BPT) - While the Affordable Care Act (ACA) is no longer new, each year brings changes to the health care law. As you undoubtedly know, the ACA is inextricably linked to taxes so keeping up with annual changes is important. Here’s what you need to know when preparing your income tax return. ACA paperwork: things to know before you file Beginning each January, a variety of tax documents are sent your way. Some arrive via snail mail and others appear in your email inbox. And while you’ve probably come to know the most common, like 1040, W-2 and maybe even Form 1099, this tax season you may receive forms you haven’t seen before: 1095-B and 1095-C (Not to be confused with Form 1095-A, which was required last year). “The important thing to know is that, in most cases, you do not need to wait until you receive these forms to file your tax return. Simply check a box on your return to indicate you had minimum essential coverage throughout the year.

A little background In 2014, the IRS released Forms 1095-B and 1095-C as optional paperwork for employers and insurance providers. For tax year 2015, it became a requirement for every business and insurance provider to administer the forms to the IRS and the corresponding individual or employee as proof of provided coverage. Here’s what you need to know about the three versions of Form 1095:• Form 1095-A - if you purchased health insurance through the Health Insurance Marketplace in 2015, you can expect to receive Form 1095-A. When preparing your 2015 federal return, you will need to use this information to complete your income tax filing, claim premium tax credits and adjust any tax credit payments.• Form 1095-B - your insurance company will send you this form if you received minimum essential health coverage through an employer, the government or a government-run plan such as Medicaid, Medicare, CHIP, TRICARE, VA benefits, etc.

• Form 1095-C - this form will come directly from your employer if it offered coverage to you through a company-sponsored health care plan. No matter which 1095 form you get, the purpose is the same: to provide an accurate picture of the health insurance coverage you had access to throughout the past year. However, the information provided on Form 1095-B and 1095-C varies slightly. * Form 1095-B includes details specific to your selected health insurance plan, such as the name of your health insurance provider, who the plan covered and the period during which your family had health insurance. • Form 1095-C lists the coverage options you were offered through a company-sponsored health care plan. Even if you chose not to participate in your company-sponsored plan, you will still receive Form 1095-C as proof of the options made available to you. Steeper penalties for the uninsuredThe ACA says that most Americans living in the United States are required to have qualified health insurance

coverage. The penalty, payable with 2015 returns (due April 18, 2016), is the greater of:• 2 percent of your yearly household income above the tax-filing threshold (generally about $10,300) up to a maximum cost of the national average premium to purchase a Bronze Plan from the federal healthcare exchange (also called a Marketplace)• $325 per adult ($162.50 per child under 18), but not more than $975These costs have more than tripled since 2014 when the penalty was $95 per person or 1 percent of household income. In 2016 they spike even higher.

Help when you need it TaxAct provides a wealth of information about the ACA and your taxes at www.healthcareact.com. Taxpayers using TaxAct are guided through an easy Q&A interview that asks simple questions about their 2015 taxes and health insurance. To start your income tax return for free with TaxAct, go to www.taxact.com.

Monday, February 15, 2016 O Our Presidential HistOry O Page 1

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2016 Securing Your Financial Future q Page 11

There’s no free lunch (BPT) - There’s no free lunch and most workers don’t want one anyway. You’ve probably heard the popular adage that “there’s no such thing as a free lunch,” underscoring the idea that it is impossible to get something for nothing. Yet most Americans wouldn’t want a free lunch anyway, recent research shows. Only one in five (18 percent) American workers prefer free lunches as one

of their top three employee benefits of choice, according to the 2015 MassMutual Generations@Work Study. Instead, 47 percent of workers age 18 and older prefer more vacation time, 44 percent opt for better 401(k) matches, and 40 percent like free health care coverage, according to the study. What benefits workers prefer largely depends upon their gender and generation, the study finds, complicating benefit decisions for employers. “Given the varied preferences for employee benefits, the takeaway for employers is to offer as broad a menu of benefits as possible. They should also consider offering new or expanded benefits on a voluntary or employee-paid basis,” says Elaine Sarsynski, executive vice president of MassMutual Retirement Services and Worksite Insurance. Half of all baby boomers surveyed and 48 percent of millennials say their benefit of choice is more vacation days, according to the study. Nearly half of Gen Xers (47 percent) prefer better 401(k) matches, the survey found, with more vacation days coming in a close second (44 percent). After more time off, boomers express preferences for financial benefits.

Forty-three percent of boomers want better 401(k) matches, 38 percent appreciate free health care coverage, and 24 percent want more investment choices for their retirement savings, according to the study. Four in 10 (43 percent) prefer expanded health care benefits. Breaking with boomers, millennials like flexible work schedules (43 percent) and reimbursements for education and tuition (30 percent). But many Xers join their boomer colleagues in wanting better 401(k) matches, most likely a reflection that few Xers have access to pensions and that many boomers have not saved enough for retirement, according to Sarsynski. Men’s benefits of choice are more vacation time (50 percent), better 401(k) matches (43 percent) and flexible work schedules (39 percent), MassMutual’s study finds. Women’s preferences are spread between more vacation (44 percent), better 401(k) matches and flexible work schedules (40 percent), expanded health care choices (37 percent) and free gym memberships (31 percent). Workers should make the most of the benefits their employer currently provides and suggest other benefits that companies might make available on a

voluntary basis, Sarsynski said. She recommends workers take inventory of their benefits and prioritize their importance based on personal financial needs:• Make sure you have health care coverage unless you are already protected by a spouse’s medical plan•Protection benefits such as life insurance and disability insurance rank next in importance, especially if you are married, have children or other people depend upon your ability to earn a living• Defer as much of your income as you can afford for retirement as early as possible. The sooner you start saving, the longer the power of compound earnings will have to work and boost your savings power. Make sure you contribute enough to your employer’s 401(k) or other retirement plan to qualify for any matching contributions.• Use your vacation time as it’s important to get a meaningful break from your job The research was conducted on MassMutual’s behalf by KRC Research as part of an employee benefits education initiative. The study focused on 1,517 working Americans who were at least age 18 in a wide variety of jobs and industries.

www.edwardjones.com Member SIPC

Matthew A Blades,AAMS®Financial Advisor.

115 W Callender StreetLivingston, MT 59047406-222-4803

MKD

-865

2A-A

Investing is about more than money.At Edward Jones, we stop to ask you the question: “What’s important to you?” Without that insight and a real understanding of your goals, investing holds little meaning.

Contact your Edward Jones fi nancial advisor for a one-on-one appointment to discuss what’s really important: your goals.

www.edwardjones.com Member SIPC

Stephanie CunninghamFinancial Advisor.

115 W Callender StreetLivingston, MT 59047406-222-4803

MK

D-8

652A

-A

Investing is about more than money.At Edward Jones, we stop to ask you the question: “What’s important to you?” Without that insight and a real understanding of your goals, investing holds little meaning.

Contact your Edward Jones fi nancial advisor for a one-on-one appointment to discuss what’s really important: your goals.

Matthew A Blades,AAMS®

Financial Advisor

115 W Callender St. Livingston, MT

59047 406-222-4803

Stephanie CunninghamFinancial Advisor

115 W Callender St. Livingston, MT

59047 406-222-4803

www.edwardjones.com Member SIPC

Matthew A Blades,AAMS®Financial Advisor.

115 W Callender StreetLivingston, MT 59047406-222-4803

MK

D-8

652A

-A

Investing is about more than money.At Edward Jones, we stop to ask you the question: “What’s important to you?” Without that insight and a real understanding of your goals, investing holds little meaning.

Contact your Edward Jones fi nancial advisor for a one-on-one appointment to discuss what’s really important: your goals.

MK

D-8

652A

-A

2016 Securing Your Financial Future q Page 12