Tips

In today’s digital age, online banking offers unparalleled convenience, allowing users to manage their finances from anywhere at any time. However, with this convenience comes the increased risk of cyber threats and fraud. Whether you are an individual, a small business owner, or a client of CPA services, it’s crucial to take proactive steps to secure your digital banking activities. Here are some helpful tips to help you keep your digital banking secure.

Understanding the Risks

Before getting into the specific security measures, it’s important to understand the types of risks associated with digital banking. Cybercriminals employ various tactics to gain unauthorized access to your accounts, including phishing attacks, malware, and social engineering. These threats can lead to financial losses, identity theft, and compromised personal information. Recognizing these risks is the first step in safeguarding your online banking activities.

Create Complex Passwords

A strong password is your first line of defense against unauthorized access. Create passwords that are at least 12 characters long and include a mix of uppercase and lowercase letters, numbers, and special characters. Avoid using easily guessable information such as birthdays, names, or common words.

Use Different Passwords for Different Accounts

Using the same password across multiple accounts increases the risk of a security breach. If one account is compromised, all accounts with the same password are at risk. Ensure each of your online banking accounts has a unique password.

Change Passwords Regularly

Regularly updating your passwords can further enhance security. Set reminders to change your passwords every few months and avoid reusing old passwords. This practice can help protect your accounts from long-term exposure to potential threats.

Add an Extra Layer of Security

Two-factor authentication (2FA) adds an extra layer of security to your online banking accounts. With 2FA, you must provide two forms of identification before gaining access: something you know (password) and something you have (a code sent to your phone or email). This makes it significantly harder for cybercriminals to access your accounts, even if they have your password.

Use Reliable 2FA Methods

Not all 2FA methods are created equal. While SMS-based 2FA is better than nothing, it’s more vulnerable to interception. Consider using app-based 2FA (such as Google Authenticator or Authy) or hardware tokens for more robust security.

Recognize Phishing Attempts

Phishing scams are a common method used by cybercriminals to steal sensitive information. These scams often involve fraudulent emails, texts, or websites that appear to be from legitimate sources. Be cautious of unsolicited messages requesting personal information or directing you to suspicious websites.

Verify Before You Click

Always verify the authenticity of any communication before clicking on links or providing information. Hover over links to see the actual URL, and if in doubt, contact the organization directly using a verified phone number or email address. Avoid clicking on links or downloading attachments from unknown or untrusted sources.

Keep Software Up to Date

Ensure that all your devices, including computers, smartphones, and tablets, have the latest operating systems and security updates installed. Regular updates patch vulnerabilities and protect against emerging threats.

Install Reliable Security Software

Use reputable antivirus and anti-malware software to protect your devices from malicious attacks. Ensure that your security software is always up to date and configured to perform regular scans.

Use a Secure Connection

Avoid conducting online banking transactions over public Wi-Fi networks, which can be easily intercepted by hackers. Use a virtual private network (VPN) to encrypt your internet connection, providing an added layer of security when accessing your accounts remotely.

Monitor Your Accounts Regularly

Regularly monitoring your bank account activity is essential for detecting unauthorized transactions. Review your statements and account history frequently, and set up account alerts to notify you of any suspicious activity.

Report Suspicious Activity Immediately

If you notice any unauthorized transactions or suspicious activity, report it to your bank immediately. Quick action can help mitigate potential damage and increase the likelihood of recovering lost funds.

Use Secure Banking Apps and Websites

Only use official banking apps downloaded from reputable sources such as the Apple App Store or Google Play Store. Avoid downloading apps from third-party websites, as they may contain malware.

Ensure Website Security

When accessing your bank’s website, ensure that the URL begins with "https://" and that a padlock icon is displayed in the browser’s address bar. These indicators signify that the website is secure and encrypted, protecting your data from interception.

Educate Yourself and Your Family

Staying informed about the latest security practices and threats can help you protect your digital banking activities. Subscribe to security newsletters, follow cybersecurity blogs, and participate in online forums to stay updated.

Educate Family Members

If you share banking access with family members, ensure they are also aware of security best practices. Educate them about the importance of strong passwords, recognizing phishing attempts, and safe online behavior.

Leverage CPA Services for Enhanced Security

A Certified Public Accountant (CPA) can provide valuable insights into securing your digital banking activities. CPAs are well-versed in financial security measures and can offer personalized advice tailored to your specific needs.

Implement Financial Controls

CPAs can help you implement financial controls to protect your business accounts. This includes setting up multi-user access controls, establishing approval processes for transactions, and conducting regular audits to identify potential vulnerabilities.

Stay Compliant with Regulations

CPAs can also ensure that your digital banking practices comply with relevant regulations and industry standards. Compliance with these regulations not only protects your finances but also helps you avoid potential legal issues.

Securing your digital banking activities is essential in today’s interconnected world. By understanding the risks and implementing comprehensive security measures, you can protect your financial information and enjoy the convenience of online banking with peace of mind.

by Kate Supino

As people approach retirement, maximizing savings becomes paramount to ensure financial security and peace of mind during the golden years. While retirement may seem like a distant milestone for some, proper planning and strategic financial decisions in the years leading up to retirement can significantly impact one's financial well-being in retirement. In this article, we'll explore ten valuable tips to help individuals maximize their savings near retirement, offering practical advice and insights for a financially secure future.

Create a Comprehensive Retirement Plan

A solid retirement plan serves as a roadmap for achieving financial goals and navigating the complexities of retirement. Consider factors such as desired retirement age, anticipated expenses, sources of income (such as Social Security and pensions), healthcare costs, and desired lifestyle. Working with a certified financial planner or CPA can help tailor a personalized retirement plan that aligns with your unique circumstances and objectives.

Take Advantage of Catch-Up Contributions

Individuals aged 50 and older are eligible to make catch-up contributions to retirement accounts, such as 401(k)s and IRAs, allowing them to accelerate savings in the years leading up to retirement. Take full advantage of these catch-up provisions to maximize retirement savings and bridge any gaps in preparedness.

Evaluate Asset Allocation

As retirement approaches, it's essential to reassess asset allocation to align with changing risk tolerance and time horizon. Consider shifting towards a more conservative investment approach to protect accumulated savings from market volatility while still seeking growth opportunities. Diversifying investments across various asset classes can help mitigate risk and optimize returns.

Minimize Debt

High levels of debt can pose a significant obstacle to achieving financial security in retirement. Prioritize paying off high-interest debts, such as credit cards and personal loans, to reduce financial obligations and free up cash flow for savings. Avoid taking on new debt near retirement and explore debt consolidation strategies to streamline repayment.

Maximize Tax-Efficient Withdrawals

Develop a tax-efficient withdrawal strategy to minimize the tax impact on retirement savings. Consider factors such as tax-deferred versus taxable account withdrawals, the timing of Social Security benefits, and the sequencing of retirement account distributions. Consult with a tax professional to optimize tax planning strategies tailored to your specific situation.

Delay Social Security Benefits

Delaying Social Security benefits beyond full retirement age can result in higher monthly payments and increased lifetime benefits. While individuals can start receiving Social Security as early as age 62, delaying benefits until age 70 allows for accrual of delayed retirement credits, resulting in a significant boost to retirement income. Carefully weigh the financial implications and consider factors such as longevity, health status, and financial needs before deciding when to claim Social Security.

Explore Healthcare Options

Healthcare expenses can be a substantial portion of retirement costs, particularly as individuals age and require more extensive medical care. Research available healthcare options, including Medicare coverage, supplemental insurance plans, and health savings accounts (HSAs), to minimize out-of-pocket expenses and ensure comprehensive coverage in retirement. Factor healthcare costs into your retirement budgeting to avoid unexpected financial burdens.

Downsize Housing

Downsizing housing near retirement can yield significant cost savings and unlock home equity for retirement income. Consider relocating to a smaller home or a more affordable area to reduce mortgage payments, property taxes, and maintenance costs. Alternatively, explore options such as renting or downsizing to a retirement community to streamline expenses and enhance retirement lifestyle flexibility.

Stay Engaged in the Workforce

Many individuals choose to work part-time or pursue consulting opportunities in retirement to supplement income and stay engaged professionally. Explore flexible work arrangements, freelance opportunities, or encore careers that allow you to leverage your skills and expertise while generating additional income. Continued employment can also delay drawing down retirement savings, allowing for further growth and preservation of assets.

Review and Update Estate Planning Documents

As retirement approaches, it's crucial to review and update estate planning documents to ensure they reflect your current wishes and circumstances. This includes wills, trusts, powers of attorney, and beneficiary designations on retirement accounts and insurance policies. Work with an estate planning attorney to address any changes or complexities and ensure a smooth transition of assets to beneficiaries.

By implementing these tips, people can optimize their retirement readiness, minimize financial risks, and enjoy a financially secure and fulfilling retirement. Even if a person does a few of these tips, that will help to ensure that retirement savings are at the highest possible levels. No matter where you are right now, don’t feel discouraged if your retirement savings account is looking a little bit sparse. Whether you're on the brink of retirement or still in the planning stages, it's never too late to take control of your financial future and make informed choices that lead to a prosperous retirement lifestyle. As trusted advisors, CPAs play a vital role in guiding individuals through the complexities of retirement planning, offering expertise, and support every step of the way.

by Kate Supino

The final five years leading up to your retirement offer you final chances for solidifying your financial security, ensuring you can enjoy your later years without financial worry. This period is an opportunity to make strategic decisions with expert advice from your CPA to maximize retirement readiness. The sooner you start the process, the more secure you may be during the time of your life when you want fewer things to worry about.

1. Assess Your Retirement Goals and Financial Needs

The first step in preparing for retirement is to have a clear understanding of what you want your retirement to look like. If you haven’t done this already, this is the time to really envision yourself retired. Do you have any goals about traveling in retirement? Are you thinking about downsizing in a new city or even abroad? Would you like to live nearer to your grandchildren? What kind of lifestyle do you wish to maintain? Answering these questions can help you estimate the necessary retirement budget. Work closely with your CPA to analyze your current financial situation and forecast your needs. This includes a detailed review of your savings, estimated Social Security benefits, pension details, investment income and other sources of income you can count on in your retirement.

2. Maximize Retirement Savings

As you approach retirement, it’s crucial to maximize your contributions to retirement accounts such as IRAs, 401(k)s, and other pension plans. Take advantage of your last remaining years earning a salary by making the highest contributions you can manage. The IRS allows individuals aged 50 and over to make catch-up contributions, enabling you to increase your savings significantly. Discuss with your CPA the best strategies for maximizing these contributions while considering your overall tax situation. 

3. Fine-Tune Your Investment Strategy

Review your investment portfolio with your CPA to ensure that it aligns with your risk tolerance and retirement timeline. You may also need to speak to your investment manager if you have one. As retirement nears, it's common practice to shift toward more conservative investments to protect your savings from market volatility. However, maintaining some exposure to growth-oriented investments can also be important to keep pace with inflation. Regular portfolio reviews and adjustments will help safeguard your assets as you move closer to retirement. This tip is not intended as investment advice, but only offers some aspects worth considering. 

4. Plan for Healthcare Costs

Healthcare is often one of the most significant expenses in retirement. As people age, they often develop conditions that require professional treatment. Consider your options for health insurance, such as Medicare and supplemental policies. It's also wise to look into long-term care insurance, which can cover costs not included in regular health insurance. Estimating potential medical costs and planning for them financially is something your CPA can assist with, ensuring you are covered for various health-related scenarios without leaving yourself short in the savings department.

5. Review Your Social Security Strategy

Deciding when to start taking Social Security benefits is a critical decision that impacts your retirement income. You can begin to receive benefits as early as age 62, but delaying benefits until full retirement age or even age 70 increases your monthly payments. Visit your local social security office to find out the exact dollar amounts you can expect when you retire. Then take these details and discuss with your CPA the best strategy for your specific financial situation, including how your decision will impact your taxes and overall retirement income.

6. Pay Down Major Debts

Entering retirement debt-free, or with minimal debt, is ideal. Focus on paying down high-interest debts such as credit card balances, personal loans and mortgages. A debt-free status can significantly reduce your monthly expenses, making your retirement savings stretch further. You’ll also sleep better at night knowing that you don’t have overwhelming debts. Your CPA can help you to devise a plan to tackle debt efficiently, considering the impact on your taxes and savings.

7. Understand Your Tax Situation

Taxes can significantly affect your retirement funds. Work with your CPA to understand how your income sources in retirement will be taxed, including Social Security benefits, withdrawals from retirement accounts and investment earnings. Planning for taxes before you retire can lead to substantial savings and more predictable financial planning.

8. Prepare Your Estate

Estate planning is vital to ensure that your assets are distributed according to your wishes and that your loved ones are cared for in your absence. This includes creating or updating your will, setting up trusts if appropriate, and ensuring all beneficiary designations are up to date on accounts like IRAs, 401(k)s, and insurance policies. Estate planning also involves preparing for potential incapacity through powers of attorney and healthcare directives. Your CPA, in collaboration with an estate attorney, can guide you through these preparations. Consider having a family meeting so that your beneficiaries and offspring can know what to expect after you’re gone.

9. Practice Living on Your Retirement Budget

One of the best ways to ensure you are ready for retirement is to practice living on your projected retirement budget. This can help you adjust your spending habits and identify any gaps in your financial plan. Use this trial period to refine your budget to reflect realistic spending in retirement. It may only take a month or two of this trial period to discover things you overlooked or expenses you underestimated, such as your food budget.

10. Consult Regularly with Your CPA

Regular consultations with your CPA throughout the last five years before retirement can ensure that you stay on track with your financial goals and adjust your plans as circumstances change. Your CPA can offer ongoing advice and support, helping you navigate the complex financial landscape as you transition into retirement.

The final five years before retirement are a critical time for making financial adjustments and decisions that will shape your future. By focusing on these strategic areas and working closely with your CPA, you can approach retirement with confidence, knowing that you are well-prepared for the years ahead.

by Kate Supino

In today's increasingly competitive job market, a college education is often seen as essential for securing a prosperous future. As a result, parents are under immense pressure to save for their children's higher education expenses. However, navigating the college savings landscape can be daunting, and making the wrong decisions can have significant financial repercussions. To help parents make informed choices, it's crucial to be aware of common pitfalls that can derail college savings plans. In this article, we'll discuss ten costly college saving mistakes to avoid, empowering families to better prepare for their children's educational journey.

1. Procrastination

One of the most detrimental mistakes parents can make is delaying the start of their college savings journey. With the rising cost of tuition, every year of delay can significantly impact the amount needed to fund a college education. Starting early allows for more time to benefit from compound interest and investment growth, easing the financial burden in the long run.

2. Not Setting Clear Goals

Without clear goals, it's challenging to develop an effective college savings strategy. Parents should consider factors such as the type of institution their child may attend, anticipated costs, and the desired amount of financial aid. Establishing specific savings targets provides a roadmap for contributions and investment decisions.

3. Overlooking Tax-Advantaged Accounts

Many parents miss out on valuable tax benefits by failing to utilize tax-advantaged college savings accounts, such as 529 plans or Coverdell Education Savings Accounts (ESAs). These accounts offer tax-deferred growth and tax-free withdrawals when used for qualified educational expenses, making them powerful tools for maximizing savings. Your CPA will have more details about how to manage these.

4. Ignoring Investment Risks

While it's natural to prioritize capital preservation, overly conservative investment approaches may not yield sufficient returns to keep pace with college inflation rates. Conversely, taking on excessive investment risks can jeopardize savings in volatile market conditions. Finding the right balance between risk and return is essential for achieving long-term growth while minimizing exposure to market fluctuations.

5. Underestimating College Costs

Many parents underestimate the true cost of college, focusing solely on tuition expenses and overlooking additional costs such as room and board, textbooks, and miscellaneous fees. It's crucial to conduct thorough research and factor in all potential expenses when calculating savings goals to avoid coming up short when the time comes to pay for college.

6. Not Maximizing Financial Aid Opportunities

Some families assume they won't qualify for financial aid and overlook valuable opportunities for assistance. However, financial aid eligibility is determined by various factors beyond income, including family size, assets, and the number of children in college. Failing to explore financial aid options can result in missed opportunities for grants, scholarships, and low-interest loans.

7. Inadequate Diversification

Diversification is a fundamental principle of investing, yet many parents overlook its importance when managing college savings. Relying too heavily on a single investment vehicle or asset class exposes savings to unnecessary risk. A well-diversified portfolio can help mitigate volatility and improve overall performance, ensuring a more stable foundation for funding future educational expenses.

8. Failing to Adjust Contributions

Life circumstances and financial priorities can change over time, necessitating adjustments to college savings contributions. Some parents set a fixed savings amount and fail to revisit their plan regularly, potentially falling short of their goals. It's essential to periodically reassess savings targets and adjust contributions accordingly to stay on track for meeting educational funding needs.

9. Borrowing from Retirement Funds

While the temptation to tap into retirement accounts to fund college expenses may be strong, it's a decision that can have significant long-term consequences. Withdrawing funds prematurely not only jeopardizes retirement security but also incurs penalties and taxes that erode savings. Parents should explore alternative funding sources and consider the full impact on their financial future before resorting to retirement plan withdrawals.

10. Underestimating the Impact of Inflation

Failing to account for inflation can undermine the purchasing power of college savings over time. Tuition costs have historically outpaced the rate of inflation, meaning that what may seem like a substantial savings amount today could fall short of covering future expenses. Parents should consider inflation when setting savings goals and regularly review their plans to ensure they keep pace with the rising cost of education. Utilizing investment vehicles that offer potential for growth exceeding inflation rates can help safeguard savings against erosion over the long term.

11. Neglecting to Involve Children

Finally, excluding children from discussions about college savings can be a missed opportunity for valuable financial education. Involving children in the process fosters a sense of ownership and responsibility, instilling important money management skills from a young age. By educating children about the value of saving and investing for their future, parents empower them to make informed decisions and take an active role in their college planning journey.

Navigating the college savings landscape requires careful planning and foresight to avoid costly mistakes. By steering clear of common pitfalls such as procrastination, inadequate diversification, and borrowing from retirement funds, parents can better position themselves to achieve their college savings goals. With a well-defined strategy, proactive financial management, and a commitment to ongoing education, families can pave the way for their children's academic success without sacrificing their long-term financial well-being. As trusted advisors, CPAs play a crucial role in guiding families through the college savings process, offering expertise and support every step of the way.

by Kate Supino

Your credit report and score are always evolving. They reflect your record of paying debts on time, over time. Even if you had great credit in the past, it may be that your credit has suffered, and your score’s taken a nosedive. Even though that’s bad news, the good news is that credit is always changing, and it’s possible to come back from bad credit. Given enough time and the right moves on your part, it’s possible to get your credit back where it should be, where it can serve your needs instead of keeping you  back. Following are some steps you can take. You might not be able to do everything at once, but every little bit will help. 

Take a Second Job For Extra Income

A lot of times when someone’s credit suffers, it’s because they just didn’t have the money to keep up with monthly payments. If this is similar to your situation, you may want to consider getting a second job—at least temporarily—so you get some extra income to start making those payments. And even if this doesn’t describe your situation, you might still want a second gig because you’re going to have a lot of added interest to pay, due to the missed payments. After things settle, you can leave the extra gig, but then it may be time to take the next step on this list, re-evaluating your income.

Re-evaluate Your Income Needs

If your income hasn’t been enough to make your payments on time, it’s possible that you just aren’t making enough. You may need to talk to your boss about a raise, or start looking for a higher paying job elsewhere. Ideally, you want to be able to pay your bills and have enough left over for your savings. If this isn’t happening, then you either need to make more money every month, or consider the next item listed here.

Take a Look at Your Spending Habits

Are you living above your means? Sometimes people get into credit problems because they’re using credit cards to fund a lifestyle that they can’t afford. You want to be able to pay off your credit card bill each month, not just make the minimum monthly payments. And you also don’t want to be using your credit card for perishables like luxury items that are out of your price range. Again, if you’re using credit cards to pay for a lifestyle that’s above your means, you should work on your spending habits to keep them in check, so you can start building your credit back up.

Become an Authorized User

Becoming an authorized user on a family member or friend's credit card account with a positive payment history can be a strategic move to bounce back from bad credit. As an authorized user, you inherit the primary account holder's credit history, potentially boosting your own credit score. However, it's important to ensure that the primary account holder uses credit responsibly, as any mismanagement could negatively impact both parties. By piggybacking off their good credit habits and making timely payments, you can gradually improve your creditworthiness. This method offers a relatively low-risk opportunity to rebuild your credit.

Get a Secured Credit Card

A secured credit card is a tool to rebuild credit for those with a history of bad credit or no credit. Unlike traditional credit cards, secured cards require a cash deposit, which acts as collateral and sets the credit limit. By responsibly using the secured card, making timely payments, and keeping balances low, individuals can demonstrate creditworthiness to lenders. Over time, as the individual establishes a positive payment history, they may qualify for unsecured credit cards with higher limits and lower interest rates. This gradual improvement in credit utilization and payment behavior usually helps rebuild credit scores effectively.

Get a Loan to Pay Off Debt

Sometimes it makes sense to borrow money to pay off credit cards all at once. Only do this if you can get a low-interest loan from a lender or a friend. Never resort to hard money lenders or payday lenders; that will only dig you in a deeper hole than you were before. Once you get caught up with your payments, put the cards away and forget about them. The last thing you want to do is max out the cards again and then also owe money for the extra loan you got.

Stay in Touch With Creditors

Don’t ghost your creditors. Pick up the phone and make that difficult call to tell them that you know you’re late on your payments. They’ll want to know your circumstances and when you think you’ll be able to catch up with your payments again. In some cases, they may offer you a payment plan, or offer to stop charging you interest on your outstanding debt. Their response will depend on what kind of customer you’ve been in the past. If you are able to make a suitable payment arrangement, make sure you fulfill your part of the bargain. Otherwise, the debt will go to a collection agency, which will really make your credit report look bad. 

Talk to Your CPA

Your CPA may have some ideas about how to improve your financial situation. Don’t be afraid to ask for a consultation to discuss your issues. Remember, aside from you, they have the most information about your finances, so they can act as an objective counsel to give you tips about bouncing back from bad debt.

No matter how you got into a position of having bad debt, there is a way out. You will need to be patient. It can take a year—or even more—to improve your credit to the point where it used to be. Just stick with your plan and resolve to do things differently in the future, so you don’t find yourself in this predicament ever again!

by Kate Supino

When considering the purchase of a vehicle, the debate between opting for a new or used car is a significant one, impacting various aspects of your finances. Cars, second only to houses in terms of big-ticket purchases, demand careful financial planning and consideration of how they fit into your budget. This article delves into the various financial implications of buying new versus used cars, examining aspects such as down payments, monthly payments, operating costs, and depreciation.

Down Payment

The initial down payment is a critical factor in both new and used car purchases. A larger down payment reduces the amount you need to borrow, consequently lowering your monthly payments. Generally, used cars are less expensive, requiring a smaller down payment. However, it's important to consider the value depreciation of the car against the size of your down payment. Interestingly, new cars might offer manufacturer incentives like rebates, potentially reducing the required down payment.

Monthly Payments

Monthly payments are influenced by three primary factors: the borrowed amount, the loan term, and the interest rate. While new cars are pricier, they often come with longer loan terms and lower interest rates compared to used cars. For instance, a new car might cost more upfront, but the monthly payment might not be significantly higher than that of a used car when considering these factors. It's essential to balance the initial cost against the long-term financial implications of the loan terms and interest rates.

Adding monthly payments to your budget reduces your discretionary income, which in turn affects your capacity to seize investment opportunities. This reduced financial flexibility can mean missing out on lucrative investment opportunities that require immediate capital. Conversely, choosing a used car typically results in lower monthly payments, potentially freeing up more of your income. This additional liquidity can be crucial for taking advantage of investment opportunities as they arise, thereby potentially enhancing your financial growth and stability in the long term. 

Alternative Options

One cost-saving strategy is purchasing a low-cost, reliable used car. This option significantly reduces the monthly budget for a vehicle. The absence of monthly payments once the car is fully paid off frees up funds for other financial goals that may get you further ahead.

Leasing is another alternative that allows you to drive a new or nearly new car without the commitment of a purchase. Monthly lease payments are generally lower than loan payments for buying a car. Leasing also eliminates concerns about depreciation and allows you to upgrade to a newer model every few years. However, it's important to consider mileage limits and potential extra charges at the end of the lease.

For those who don't require a car daily, car sharing services or car subscription models offer flexibility. These services allow you to use a car when needed without the responsibilities of ownership, such as maintenance, insurance, or depreciation. This option can be cost-effective, especially in urban areas with good public transportation.

Insurance

Insurance costs vary quite a bit between new and used cars, presenting both pros and cons. New cars often attract higher insurance premiums due to their higher value and the cost of replacing parts or the entire vehicle in case of an accident. Comprehensive and collision coverage tends to be more expensive for new cars. However, they might also come with safety features that can lower insurance costs. On the other hand, used cars generally incur lower insurance premiums due to their reduced value. But, they may lack the latest safety features, which could potentially lead to higher costs in certain coverage areas. Older models might be more prone to theft if they are popular with thieves, impacting insurance rates. Ultimately, the choice depends on balancing these factors against personal needs and financial constraints.

Operating Costs

New cars typically offer the advantage of lower operating costs in the initial years, thanks to warranties that cover most repairs. In contrast, used cars might require budgeting for repairs and maintenance, especially those without warranty coverage. The savings on monthly payments or down payments for a used car should ideally include a reserve for potential repairs.

Depreciation

Depreciation is an unavoidable aspect of car ownership. New cars tend to depreciate more rapidly in the initial years, with a substantial drop in value occurring in the first year alone. Once you drive it off the lot, it automatically depreciates in value, and not by a small amount. Used cars, while depreciated, lose value at a slower rate in subsequent years. Planning for car replacement should factor in the vehicle's current value and its depreciation rate.

The decision between buying a new or used car depends on various financial considerations, including down payments, monthly payments, operating costs, and depreciation. New cars offer the benefit of lower operating costs and longer loan terms. They also hold appeal because you’re the first owner. The car comes to you clean, which is an inspiration to take good care of it. Used cars might be more budget-friendly in terms of initial cost and depreciation. They also carry the added risks of hidden problems that could prove costly, undoing any savings you saw from not buying new. Ultimately, the choice hinges on individual financial situations and long-term budget plans. If you need help deciding whether a new or used car purchase makes sense for your budget, consult with your professional CPA.

by Kate Supino

Traveling can be an enriching experience, but it also exposes you to unique risks, especially regarding your digital and financial security. In an age where internet hackers, identity thieves, and skimming devices are increasingly prevalent, protecting your assets is more crucial than ever. This guide offers essential tips on how to shield yourself from these threats. From securing your internet connections in hotels to using RFID-blocking wallets, there are a range of actionable strategies you can use to protect yourself.

1. Secure Internet Connections

When traveling, one of the biggest risks comes from internet connectivity. Hotels and Airbnbs, offering convenient, free Wi-Fi, are hotspots for hackers looking to exploit vulnerabilities in network security. These public networks are often unencrypted, allowing malicious actors to easily intercept your data. This interception can lead to the theft of sensitive information, such as personal details, passwords and financial data.

To counteract this, use a Virtual Private Network (VPN), which can encrypt your data, making it difficult for hackers to access your information. Always verify the legitimacy of a hotel's Wi-Fi network with the front desk to avoid connecting to a decoy network set up by hackers. Be wary of activities involving sensitive data, such as online banking, when using public Wi-Fi, and consider using your mobile data for these purposes when in doubt.

2. Guard Personal Information

Traveling exposes you to diverse environments and interactions, often necessitating the sharing of personal information. This exposure significantly increases the risk of identity theft. Identity thieves can exploit lost or stolen documents, or even overhear sensitive information in public places. 

Be cautious about where and how you share your personal details., even with trusted new friends. Use hotel safes to secure important documents like passports and avoid carrying them unnecessarily. Be mindful of your surroundings when entering PINs or passwords in public spaces. Consider using services that offer identity theft protection, which can monitor your personal information and alert you to any suspicious activity.

3. Lookout For Skimmers

Credit and debit card fraud has become a major concern, especially while traveling. Skimmers are illegal card readers attached to payment terminals like ATMs or gas pumps are a common tool used by thieves to steal card information. These devices can be incredibly hard to detect and can capture card details in seconds, leading to unauthorized transactions and financial losses.

To protect yourself from skimmers, it's important to be vigilant when using your cards. Before inserting your card into an ATM or payment terminal, inspect the machine for any unusual attachments or loose parts. When possible, pay for things like gas inside, instead of at the pump. Avoid ATMs in secluded or poorly lit areas, as they are more likely to be tampered with. If possible, use ATMs within secure bank premises for added security. It's also advisable to regularly check your bank statements for any unauthorized transactions.

4. Use an RFID-blocking Wallet

With the rise of Radio-Frequency Identification (RFID) technology in credit cards and passports, there's an increased risk of a type of electronic pickpocketing known as RFID skimming. Thieves equipped with RFID readers can stealthily scan and capture information from RFID-enabled items through clothes and wallets, leading to identity theft and unauthorized access to your financial accounts.

To combat this, using an RFID-blocking wallet is a smart move. These wallets are designed to shield your cards and passports from RFID readers, making it difficult for skimmers to access your sensitive information. They work by creating a metal shield around your items, which blocks electromagnetic fields and prevents RFID scanning. This is particularly important in crowded places like airports, train stations, or tourist attractions, where close proximity to others makes it easier for electronic pickpockets to operate.

5. Monitor Bank Accounts

When traveling, your bank accounts are more susceptible to unauthorized access and fraudulent transactions. This increased risk is due to various factors, such as the use of unfamiliar ATMs, exposure to less secure internet connections and the potential theft of physical bank cards. 

To safeguard against this, it's vital to monitor your bank accounts regularly. This means frequently checking your account statements and transaction history, either through online banking or mobile banking apps. Setting up alerts for every transaction can also be extremely beneficial. These alerts notify you of any activity in your account, allowing you to quickly detect and respond to any unauthorized transactions. If you notice any suspicious activity, contact your bank immediately to take the necessary actions, such as freezing your account or canceling your cards.

6. Enhance Device Security

Our devices contain a wealth of personal and sensitive information. While traveling, these devices are more vulnerable to various cyber threats, including hacking, malware, and data theft. Unsecured Wi-Fi networks in hotels, airports, and cafes can serve as gateways for cybercriminals to access your devices. Losing these devices or leaving them unattended can also lead to data breaches and identity theft.

Start by ensuring that all your devices are password-protected and that these passwords are strong and unique. Regularly update your operating systems and apps to patch any security vulnerabilities. Consider installing reputable security software to protect against malware and viruses. Activate tracking services like 'Find My Device' for smartphones and laptops, which can help locate your devices in case they are lost or stolen.

7. Say Yes to Travel Insurance

Unexpected events like trip cancellations, medical emergencies, or loss of personal belongings can have a significant financial impact. Without adequate protection, these unforeseen circumstances can lead to substantial out-of-pocket expenses, potentially jeopardizing your financial security. This is where travel insurance becomes essential.

Travel insurance offers a safety net. It can reimburse you for non-refundable travel costs if your trip is unexpectedly canceled or interrupted. In case of medical emergencies, especially in countries where your health insurance may not be valid, travel insurance can cover medical treatment and evacuation costs. It offers compensation for lost, stolen, or damaged luggage and personal items. When selecting a travel insurance policy, ensure it covers the specific needs and risks associated with your travel destination and activities.

With all the convenience that technology brings, it also carries more risk. A loss of assets can turn a happy vacation into a sour memory. Use these tips to stay safe while traveling at home or abroad.

by Kate Supino

One of the misconceptions about CPAs is that they’re only for the wealthy. While it’s true that CPAs are often associated with high-net-worth individuals, it’s also true that anyone can use the services of a CPA. It’s not just the wealthy who need help with financial planning and tax strategies. In fact, CPAs can play a vital role in helping people from all walks of life to improve their financial situations. And, in the case of ordinary people in modest financial conditions, a good CPA can actually help those persons to gain a better understanding of their finances, and possibly improve their overall financial situation.

What do CPAs Do?

If you’ve never used a CPA, you may wonder what it is they actually do. CPAs, or Certified Public Accountants, spend their days poring over numbers. They analyze financial records, stay up to date on the tax code, create budget reports, oversee the preparation of tax filings, conduct financial audits, help to ensure that their clients remain compliant with government regulations and much more. A CPA carries a tremendous amount of responsibility, earning their clients’ trust with their diligence and close attention to documents.

What’s the Purpose of a CPA?

CPAs help with forensic accounting, tax preparation, financial statements, internal auditing, and much more. Their main purpose is to help individuals and businesses to thrive financially, and to ensure that all financial records are accurate, that a person or individual is not overpaying in taxes and more. With the help of a qualified CPA, you and/or your business have the potential to live your best financial life. It would be a shame to pass up this valuable service just because you think that only wealthy people can use—or should use—a CPA.

Why the Misconception?

It’s possible that there’s a misconception about CPAs being only for the wealthy because the wealthy may be more vocal about using a CPA. It’s certainly true that the higher the income, the more taxes a person may be asked to pay. So a wealthy person would be quicker to hire a CPA in order to avoid paying a lot in taxes. They may then be so happy about the results that they praise their CPA in public. However, “ordinary” people with “ordinary” wealth also use CPAs, and it’s only right that they should do so.

Why Use a CPA?

The question should be, why not use a CPA? Anyone who has finances to manage and who makes enough money to file a tax return should use a CPA. They are affordable, easy to work with, friendly and extremely helpful. If for no other reason than to be sure your tax return is correctly filed, CPAs earn their keep tenfold.

Use a CPA For Business Financials

CPAs aren’t just for individuals, either. They are trained and licensed to help business owners of all sizes to plan, strategize and meet business goals. Are you wondering if you’re big enough to hire extra help? A CPA can help assess that situation. Are you wondering how you can improve your business cash flow? CPAs know all about managing cash flow. Would you like to give employee bonuses but don’t know how that will impact taxes? Ask a CPA! No matter if you’re just starting out in business or you’re contemplating your first merger, your CPA has the answers you need.

Use a CPA For Financial Goals

It can be hard to successfully reach your financial goals. CPAs know all about this, and are ready with practical guidance and steps you can follow to get you on your way. No matter where you are in the journey, they can help guide you and help you to avoid missteps.

Use a CPA For Debt Management and Credit Counseling

Many, if not most, households in the U.S. are in debt at some level. Regardless of income, many individuals find themselves burdened by this debt, feeling unable to get out from under it. CPAs can provide valuable insights into effective debt management strategies, helping individuals develop actionable plans to reduce and eliminate debt. CPAs can offer insights into how to improve credit going forward, guiding individuals on how to improve their credit scores and access better financial opportunities. Wealthy, middle and lower income people can all use insight into debt management, so this is another reason why CPAs are for everyone.

Use a CPA For Investment Advice

Are you wondering how to handle a second home that you want to use for rental income? Or are you looking to make suitable investment choices that align with your level of risk tolerance? CPAs can empower all your investment decisions by educating you about all the tax advantages of various strategies, setting a clear plan in place that you can feel good about.

Use a CPA For Retirement Planning

Planning for retirement is a crucial aspect of financial well-being, and CPAs can play a pivotal role in ensuring individuals are adequately prepared for their golden years. CPAs can help individuals understand different retirement savings options, assess their retirement needs and develop a comprehensive retirement plan that aligns with their financial goals. Since everyone will retire if they live long enough, you can easily see why the services of a CPA are for everyone, not just a select portion of the population who is wealthy.

If you’ve been hesitant about booking an appointment with a CPA because you thought they were only for the wealthy, it’s time to let go of that false belief. Don’t be embarrassed that you don’t have hundreds of thousands of dollars in the bank. Everyone has to start somewhere. A CPA may just be able to help you achieve your short and long-term goals, no matter how modest they might be.

by Kate Supino

One of the newest commodities that people are trading these days is digital assets. Digital assets may be images, videos, documents, cryptocurrency, software and more. Due to the digital nature of these assets, they can be a challenge to manage and track. Here are some best practices to keep your digital assets safe, organized and in compliance with the law.
Use a Digital Asset Management System
A Digital Asset Management (DAM) System is a software solution specifically designed to help people track digital assets. With so many people collecting and trading digital assets, a whole new industry has cropped help to facilitate effective asset tracking and trading. These solutions offer a centralized repository for digital assets that can be compared to the cloud solution for computer data storage. DAMs help to streamline the organization and accessibility of digital assets in a very user-friendly environment that’s also highly secure. Several options are available. When shopping for a DAM system, look for features like metadata tagging capability, access controls and version controls.
Use Consistent File Naming Convention
If you’re older and worked in business, you know all about files and folder naming conventions, and their importance in information organization. Younger folks may need to be reminded about the importance of using consistent file naming convention. In the world of digital assets, consider using a structure that includes asset type, date, project and unique identifiers. This approach allows for easy tracking and minimizes the risk of naming conflicts. If you regularly trade digital assets, you’ll likely find that descriptive and consistent file naming conventions help your buyers to find and understand your offerings, as well.
Implement Metadata Tagging
If your DAM system offers metadata tagging, make good use of it. Metadata tagging is a powerful organizational tool that offers a deeper level of asset organization and accessibility. By adding keywords, descriptions, and relevant information to your digital assets, you make them easily discoverable. This will save you time when searching for a particular digital asset, and help buyers to find digital assets that are relevant to their needs. It can also help to ensure that your digital assets meet legal requirements, when you opt to include copyright and licensing information in your metadata tags.
Use Version Control
Version control is also known as revision control or source control. It’s essentially a system that manages and tracks changes to a file over time. Imagine if you had a digital asset with multiple versions. Without implementing a version control system, you may have trouble discerning which version was changed and which version is current. Version control enables you to track the digital asset’s history, which is an invaluable feature when selling to a potential buyer. It helps to instill confidence in the asset’s provenance, quality and authenticity.
Make Regular Backups
The beauty of digital assets is that they don’t require lots of storage space. This makes it very easy to create backups of the works. Even though this is a simple practice, many digital assets owners fail to make a habit of regular backups. Instead of leaving backups to chance, create a schedule of backups so they happen once a week or on another schedule that makes sense. You might even be able to toggle on a regular backup schedule through your DAM system, if this feature is available. Explore the possibility of multiple backup strategies, including on-site and off-site solutions, for a comprehensive safeguard against data loss.
Implement Asset Classification and Categories
Creating logical categories for your digital assets is a deeper level of organization. It not only simplifies retrieval but also makes the assets more appealing to potential buyers. Delve into the categorization of assets, breaking them down by type, purpose, and usage. This approach makes it easier to identify assets that have the potential for sale and optimize their presentation. An example of this would be:

Asset: Digital Photograph Collection
Classification: Visual Assets
Category: Nature Photography
Subcategory: Landscapes, Wildlife

Secure Assets

Security is paramount in the world of digital assets. Because they are not physical products, it’s harder to protect them from online hackers. Consider multiple layers of security measures like encryption, firewalls and user authentication to protect your assets from unauthorized access. When considering selling digital assets, emphasizing the robust security measures that you have in place can instill confidence in potential buyers, making them more likely to complete transactions.
Analyze Performance Metrics

Performance metrics serve as a compass to guide managing and trading digital assets effectively. These metrics can offer helpful insights into the efficiency, impact and overall health of your asset management and trading practices. By actively measuring and analyzing these metrics, you can make informed decisions, identify areas for improvement, and maximize the value of your digital assets.

Remain Compliant

Navigating the landscape of compliance and copyright is a crucial aspect of digital asset management, particularly when considering trading or sharing those assets. Ensure that you have the necessary permissions and licenses and adhere to intellectual property laws and usage restrictions. Failing to address these considerations can quickly lead to legal problems, not to mention a bad reputation among digital asset traders. Understanding copyright intricacies, such as fair use and public domain, is especially important. Put into place a compliance framework that you can apply to all new digital assets. Regular reviews, documentation and adherence to licensing agreements will help to make sure your digital assets are ethically and legally sound.

Provide Documentation to CPA

Your CPA will need to have copies of documentation regarding the sale and purchase of your digital assets. This is so that you can pay the correct amount of tax and stay on the right side of the IRS. Your CPA can help guide you as to how best to organize your sales and purchase data in a way that is most efficient.

Whether you have digital assets for personal use or for trading, tracking and managing them properly is essential. By putting these best practices into place, you can be sure that your digital assets are prepared for any purpose for which you want to use them.

by Kate Supino

Every day, scammers are concocting new ways of trying to separate you from your money. It seems with every new security measure, a new way of getting around it is invented. Since nearly everyone is online these days, the vulnerability risk is high. Take a look at five of the latest money scams, and you’ll get a sense of how incredibly sneaky they can be.

1. Charitable Giving Scams

It’s a wonderful feeling to know that you’re helping out someone in need by anonymously donating money. Crowdfunding platforms like Go Fund Me are there so that people in crisis can get money to help them up on their feet again. With the prevalence of natural disasters and dire circumstances like homelessness, Go Fund Me and others like it have become very popular. Go Fund Me takes their mission seriously and works hard to prevent fraud. But sometimes one slips past them.

In 2017, a couple in the Northeast set up a Go Fund Me campaign for a homeless man whom they had decided to help. At least that’s what their Go Fund Me page said. They raised over $400,000, but the homeless man barely saw a cent of that money. Instead, the couple bought themselves luxury items. The matter went to court and the couple was recently sentenced. In a twist, the homeless man was also sentenced for his part in perpetuating the online scam.

2. Holiday Vacation Home Scams

With the holidays approaching, families are eagerly checking out vacation home rental sites to have an ideal holiday break. There are many such sites, such as Airbnb and VRBO, but there are also individual sites, and vacation rentals on Facebook Marketplace and Craigslist. 

Now, scammers are preparing for the holidays differently than you are. They’re setting up fake holiday home rental sites in idyllic locations to lure you in. You reach out to the owner via the contact information on the site. The owner seems very professional and is delighted to host you and your family. All you have to do is send in your deposit to hold the reservation. 

Most people are willing to do this, because we’re accustomed to putting down deposits on reservations. But this scam is particularly mean.

You and your family show up on the date, only to find out that either the property is actually a vacant lot or that someone lives there and has no idea what you’re talking about or who you are. This scam has happened to countless people, ruining their vacation and causing them to lose thousands of dollars, not to mention the pain and misery of having to find alternative accommodation at the last minute, sometimes late at night.

3. Payday Loan Scams

Payday loans in and of themselves could be considered a scam, because the interest rates are astronomical. You should avoid taking a payday loan at all costs. But sometimes people do, and sometimes they also fall prey to a payday loan scam like this scenario. 

The scam typically begins with the criminals advertising fake payday loans, which they claim will provide immediate financial relief and help applicants take control of their mounting bills. These offers are often presented in a convincing manner, with official-looking websites and persuasive marketing materials, making them appear legitimate to unsuspecting victims.

Once the person applies for the loan, they are informed that they must prepay a certain fee to secure the funds. This fee is often justified as a processing charge or an upfront payment to guarantee the loan's approval. The applicant, desperate for financial assistance, usually complies, believing that they’ll soon get the loan. However, once the fee is paid, the scammers vanish, and the promised loan never materializes. The money paid as a fee goes directly into the criminals' pockets, leaving the applicant with even more financial strain and no recourse to recover the lost funds.

4. Student Debt Forgiveness Scams

The future of the Biden administration's initiative to forgive student loans is currently uncertain. Despite this, scammers are taking the opportunity to exploit those who may be unaware that the plan is on hold. These scammers have created fake application websites with the intention of stealing personal information, such as Social Security numbers and banking details, from unsuspecting individuals.

In some cases, the criminals have even reached out to potential victims over the phone, applying pressure and persuading them to apply for the fraudulent loan forgiveness program. They often charge a fee for their so-called assistance, further victimizing those who are already burdened by debt.

5. Online Romance Scams

This money scam is particularly seedy, as it preys on lonely people, often older, who are looking for someone to love them. The scammer plays the long game, slowly reeling in their victim, so trust is built up over time. The initial contact could be from social media, or a dating site, or even from a sales phone call. The scammer often pretends to be smitten, or feigns similar interests as their target. They may even send photographs that make them look real, and that back up their “story.” Over time—it could even be a year—the scammer asks for money. Maybe it’s a request to help pay for a plane ticket so they can visit the target. Or money to get their vehicle fixed, or money for a medical need. But by the time they ask, chances are the target feels so connected to the scammer, thinking they are in a relationship, that they send the money. Then their heart and their bank accounts are broken.

Unfortunately, scammers are everywhere online. It’s essential to be vigilant, especially where personal data and finances are concerned. Strive to only do transactions with people you know, and avoid being too quick to respond to emails that request personal information. It also helps to mention any suspicious requests to your CPA, who is up-to-date with all the latest money scams today. They just may help prevent you from being a victim of a scammer.

 
- by Kate Supino -