Month: April 2018

2018-03-26T14:31:00

(BPT) – If you love the idea of being a landlord, and don’t mind being on duty around the clock, buying an investment property may be the wealth-building option for you.

Property values have enjoyed a steady increase over the decades. That’s why real estate has earned its reputation as a sound investment that builds wealth and credit.

Most people, however, don’t have the quantity of cash on hand to purchase a house or apartment building outright. Still, if becoming a landlord means taking out a 30-year mortgage, the monthly payments from the tenants should be enough to service the loan and build equity for you, while leaving some cash flow so you can maintain the property.

If buying investment property sounds like a step you’d like to take, here are some credit considerations every investor needs to know.

1. Be mindful of the inquiry stage

Once you decide to purchase an investment property, it’s important to do everything you can to make sure your credit score stays as high as possible until the loan is approved and signed. Your goal is to land the best possible interest rate, because even half a percentage point can add tens of thousands of dollars of total interest payments to a 30-year loan (and affect your wealth-building abilities).

During this time, things like continuing to make on-time payments on your existing loans can be helpful in maintaining your credit score. However, sometimes people unintentionally lower their credit score when they’re actually trying to be fiscally responsible. For example, when shopping around for the best mortgage rate, keep in mind that multiple inquiries can have a negative effect on your credit score, especially if you don’t have a long credit history. Fortunately, many credit bureaus recognize that you may be comparison shopping, so make sure you do this within a defined time frame of 30-45 days.

2. Keep credit utilization low

When maintaining a property, having access to credit can be helpful because it lets you make repairs and keep things in good living condition for your tenants. One thing that can affect your credit score is the amount of credit you’re using.

Unfortunately, keeping a higher balance could result in a lower credit score. As a rule, keep your credit utilization at 30 percent or less. For example, if your credit card has a $5,000 limit, the balance should not get any higher than $1,500. Throughout the billing cycle, keep an eye on the balance, and pay it down when you can.

3. Keep a cushion of cash

It happens. You get that call about a water leak, and before you know it, you’re spending your Saturday evening pricing plumbers, searching for one whose overtime rate is only in the range of mildly outrageous.

Being a property manager means expecting the unexpected, and one of the best ways to be ready is to have enough cash at the ready to take care of these problems. Build an emergency fund in your savings account, and keep your credit paid down so you always have that cushion to fall back on during any crisis.

4. Beware of low and no-interest financing deals

When it’s time to replace the oven range or a refrigerator, one of those “no payments, no interest for 18 months” deals can seem like a lifesaver. It sounds like a great deal, but these alluring promises are designed to play a psychological trick on you. Because you don’t have to pay yet, it doesn’t really feel like spending money when you’re making the purchase.

However, once the interest-free promotional period is up, a double-digit interest rate often kicks in. If you don’t have the cash to pay off the balance or make payments, you could end up with penalties that can affect your credit score. Before you sign on, always read the fine print.

Before you invest, do your research on credit scores and know your pros and cons. More than 8.5 billion credit scores compiled by VantageScore Solutions were obtained and used in the U.S. between June 2016 and July 2017. Whatever your stage in life, the market offers many options for those who wish to build their wealth through investing in real estate.

2018-03-30T10:01:00

(BPT) – The nation’s central bank — the Federal Reserve — just raised interest rates by a quarter point. The Fed is expected to raise rates at least two more times this year by the same amount. That’s going to affect a lot of your finances, including your credit card bill, car payment and home equity line of credit. But don’t panic. Rates will still be below historical averages, and you can eliminate the impact of higher rates, or lessen them, with some careful planning. Plus, you can take advantage of higher interest rates on savings accounts.

The March 21 hike increased the Federal Reserve’s basic rate by 0.25 percent to between 1.5 percent and 1.75 percent. Here’s how it — and any future increases — will shake out.

Credit cards

“These increases will be passed along to your credit card rate almost immediately — but you’ll hardly feel it if you have a low balance,” explains Robert Frick, corporate economist at Navy Federal Credit Union. For example, for every $1,000 in credit card debt you have, each rate hike will add $2.50 per year. At the end of the year (assuming three hikes), that means an extra $7.50 annually on that same $1,000 balance. However, Frick notes the average card debt for households with a credit card balance is about $15,600, “equaling an extra $117 per year in interest charges.”

If your balance is that high, you might consider these rate hikes a wake-up call. If your credit card rate is the average (15 percent), you’re probably already paying $2,340 a year in interest payments. So, consider shopping for a lower rate — even one percentage point lower can save you more than the Fed rate hikes this year.

Home equity

Home equity lines of credit (HELOCs) — loans based on the equity in your home — are also variable and will go up along with Fed rate hikes. These rates currently start at less than 5.7 percent on average, but will probably top 6 percent with the Fed hikes before the end of the year.

Robert Frick offers some additional food for thought for consumers with high credit card debt: “Take out a HELOC, pay off your credit cards and save hundreds of dollars in interest payments. Just make sure you don’t turn around and run up a high credit card balance again.”

Auto loans

If you already have an auto loan, your rate is locked in so don’t worry about the hikes. However, if you’re shopping for a car, the Fed hikes will increase rates. That said, car loan rates vary quite a bit depending on your credit and what kind of deal you can get from your bank or credit union. The increase in rates has a small effect on the total interest you pay on the loan compared to these other variables, not to mention the term of your loan and how much you pay for the car.

Mortgages

The Fed hikes won’t directly affect fixed-rate mortgages. Those are tied to the 10-year treasury bond rate, which is primarily controlled by supply and demand in the financial markets. However, the 10-year Treasury rate has already risen this year, and is expected by many analysts to continue going up. Thirty-year mortgage rates have averaged around 5.6 percent the last 20 years, and are below 4.5 percent now.

Here’s another tip from Frick: “You should not let the prospect of rising mortgage rates trigger you into buying a house quickly. There are so many factors to consider in such a major purchase.” But to give you a rough idea on the effect of rates, a $200,000 mortgage loan at 4 percent results in a $955 monthly payment (principal and interest). A 4.5 percent loan for the same amount is $1,015, or an extra $58 per month.

If you already have a variable rate mortgage, you can expect your rate will rise along with Fed hikes.

Now, the good news

Rising rates mean you’ll get more money on bank savings accounts, money market accounts and certificates of deposit. Savings rates are also on the move. When a year ago savers were grateful for a tenth of a percentage point increase or less, you can now find rates for some products jumping by 0.3 percent, 0.4 percent or more. Frick points out that certificate of deposit rates are starting to rise and will grow in 2018. “Other savings products are not rising as much and the increases are mainly coming from credit unions and online banks, with commercial banks lagging,” he said.

Lastly, Frick recommends this savings strategy: “Do not commit yourself to a single certificate of deposit duration, unless it meets a specific goal. Buy several CDs and stagger the terms, so you’ll be able to reinvest regularly as rates rise.”

2018-04-04T08:41:00

(BPT) – Time to Vaccinate provides farmers with information and shared experiences about vaccination as a preventive tool. Learn more at www.TimeToVaccinate.com.

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2017-12-13T08:31:00

(BPT) – (BPT) – As the farming industry faces growing consolidation in the U.S., one might get the impression fewer jobs are now available in agriculture.

In fact, just the opposite is true. Today, one in three people worldwide — more than a billion employees — work in an ag-related industry.

Industry growth and digital innovation combined with retirements are driving significant demand for college grads and other professionals, including those without experience in typical ag-related subjects, and many feature excellent salaries. The USDA and Purdue University predict 57,900 jobs requiring ag skills will become available each year between now and 2020 while only 35,000 grads in food, ag, renewable resources or environment studies will look to fill those jobs each year. Further, the average starting salary in the U.S. for those graduating with bachelor’s degrees in agriculture or natural resources was a healthy $54,364 as of winter 2017, a 12 percent increase from 2016.

“People are starting to discover (agriculture) is a pretty good industry to be in,” Iowa State College Career Services Director Mike Gaul recently told CNBC. “They realize this sector isn’t our traditional what-we-joke ‘cows, plows and sows’ industry anymore. It’s incredibly diverse.”

The expectation is that grads with expertise in food, agriculture, renewable natural resources and/or the environment will fill 61 percent of all ag-related openings, while employers must seek grads in other majors to fill the 39 percent gap. Notably, women already make up more than half of the higher-ed grads in food, agriculture, renewable natural resources and environmental studies.

High school grads considering degrees in agriculture might consider one of these highest-paying ag occupations:

1. C-suite executives: The CEOs, COOs and CFOs at ag startups or established corporations routinely earn $200,000-plus for overseeing company growth and profitability. A bachelor’s or master’s degree is generally needed in addition to a background in leadership and at least five years’ industry experience.

2. Ag lawyers: Because ag is so highly regulated, such professionals may handle issues related to water, land use, pesticides, seeds, the environment, labor/HR, immigration, commerce, intellectual property, mergers/acquisitions, etc. Salaries average out at $160,000. Required: a bachelor’s degree followed by a J.D. and completed state bar exam.

3. Ag sales managers: Those skilled in overseeing sales teams are earning an average $125,000-plus annually. Most hold bachelor’s degrees in agronomy, crop science, soil science, biology, agricultural business or a related field.

4. Ag scientists: Salaries average out at $120,000. A bachelor’s degree is usually sufficient, with in-demand specialties including bioinformatics, animal genetics or the regulatory environment (managing and strategizing a product through the regulatory process).

5. Ag engineers: Among specialties in demand are environmental, ethanol and mechanical engineers, with average salaries running upwards of $80,000 for those holding bachelor’s degrees.

Bottom line: The next generation of ag specialists will be crucial to helping solve the world’s most pressing issues.

Agricultural company Syngenta is supporting that cause by bestowing multiple college scholarships to ag students each year, and of course hiring many grads in various majors.

“This is an exciting time in agriculture because we have new tools to develop better seeds and crop protection products, as well as digital solutions to help farmers be more productive,” says Ian Jepson, head of trait research and developmental biology at Syngenta. “We encourage students to think about the wide range of challenging and rewarding careers in companies like ours to help develop and deliver what farmers need to feed the world.”

2017-12-14T10:41:00

(BPT) – The Federal Reserve Board discovered in a survey of working Americans that nearly half of U.S. adults don’t have enough cash on hand to pay for a $400 emergency. If that’s a concern for you, you might be thinking about joining the 44 million Americans who have found ways to make money in addition to their main source of income. Common options include waiting tables, working retail, becoming a rideshare driver and direct selling.

Direct selling, also called direct-to-consumer sales, has been around for over 160 years, and companies like Avon, Tupperware, WorldVentures and Amway have been offering new business opportunities to independent sales representatives since they opened. The direct-sales business is still booming, with a record 20.5 million people involved in the U.S. alone in 2016. The estimated direct retail sales of $35.54 billion in 2016 was the second-highest in direct-selling history.

Is working in direct sales right for you? Benefits of working in the industry can include:

* Flexibility — You determine your schedule, and you choose to work as many — or as few — hours as you want. If you have a knack for direct selling, you could ultimately make it your main source of income.

* Personal growth and development — Take advantage of the tools and training offered by your direct selling company to help you build your business.

* Companionship — Connect with fellow sales representatives and prospective customers, which can lead to lasting relationships.

Passion for travel and financial freedom prompted Wayne Nugent, founder of WorldVentures, to launch his direct sales business in 2005. “We’ve been changing the way people take vacations for more than a decade, all while helping our independent representatives discover their potential and experience more in life,” says Nugent.

The direct seller of travel and leisure club memberships, is just one of many opportunities waiting for you. Whether you decide to go into direct sales, housesitting or part-time bartending, the possibilities for supplemental income are limited only by your imagination.

2017-12-18T06:01:00

(BPT) – Traveling but worried about being disconnected? Don’t worry, you aren’t alone. In fact, plenty of other road warriors are making sure their devices are packed and ready to go so they won’t miss a beat.

Intel(R) recently conducted a survey with YouGov to learn more about the tips and tricks connected road warriors use to keep up with email, entertainment, news and more. According to the survey, connected road warriors (69 percent) admit they always bring their mobile computing device on vacation, and nearly 1 in 3 (32 percent) indicate it makes them nervous to travel without their device.

Regardless of where they are, road warriors continue to demand strong performance and have high expectations for consistent, reliable and accessible connectivity. Seven out of 10 road warriors (71 percent) get frustrated by lagging internet performance and poor connectivity speed. And over half (55 percent) admit that the inability to quickly load pages (emails, web pages, etc.) is a top computing-while-traveling pet peeve.

Whether going to grandma’s house, a beach or a ski slope, chances are these road warriors will be looking to connect. Nearly 2 in 3 road warriors (65 percent) admit doing something extreme in order to connect their mobile computing device to the internet. Eight in 10 (81 percent) report they have connected to the internet in an unusual spot. Restaurants (60 percent) are the most commonly reported location, while nearly 4 in 10 share they have connected in a parking lot. Others report connecting at a park, beach, bar, the side of the road or at a rest stop.

While some people may still want to stay on top of work, being connected is about more than getting through your to-do list. Email may still top the list of favorite activities (90 percent) when connecting on the go, but entertainment is also popular. More than half (53 percent) say they mainly connect for entertainment like streaming and gaming.

The good news is that there are plenty of devices available today that offer great performance and great connectivity for computing on the go. The latest Intel(R)-based mobile devices are fast and responsive and come in a range of connectivity options for you to choose — Wi-Fi, tethering or always-on 4G LTE — so you can power through email or get lost in a 4K-resolution movie from a coffee shop, library, beach or grandma’s house. Powered by the latest Intel processors, these devices run all of the most popular apps for work and play and connect seamlessly with other devices:

* Samsung Galaxy Book 12 – Currently available via Verizon, this 2-in-1 PC comes with an S Pen and keyboard that connect instantly and never need charging, plus lightning-fast LTE and Wi-Fi connections so you can be creative, productive and connected, no matter where you are.

* Google Pixelbook – Google’s high-performance Pixelbook is its thinnest Chromebook ever. It features a built-in Google Assistant, a Pixelbook Pen, amazing battery life and Instant Tethering, which allows people to access their phone’s data connection even when without Wi-Fi.

* HP Spectre x360 – The ultra-slim convertible laptop has high-end power, a digital pen, long battery life, increased security features and a 4K display in addition to Wi-Fi connectivity, offering endless versatility.

* Lenovo Yoga 920 – This Wi-Fi-enabled 2-in-1 intuitive convertible laptop offers voice-activated support, a digital pen option, top performance and speed, and a 4K screen. Its Constant Connect feature downloads emails, plays music and receives Skype calls — even in standby mode.

If you’re hitting the road this season, consider an always-connected PC so you don’t miss a thing!

2017-12-26T06:01:00

2018-01-03T12:29:00

(BPT) – During the coldest months of the year, it’s hard not to think about the warmer months to come — and all that they hold. You may already be planning your next vacation or outdoor activities to host in your backyard this summer. Now is the time to brainstorm about your spring home remodeling projects that can add enjoyment and value to your humble abode.

Home remodeling projects on the rise

As the U.S. economy continues to strengthen, home improvement project investment by homeowners has increased, according to the latest Residential Remodeling Index (RRI) study. As spring is a popular time for renovation projects, you may want to start checking out popular design trends, researching product choices and figuring out what you like and what works for your family.

Here are five projects that can help you reinvent your home this spring. Besides making your home more livable and meeting your family’s needs, you will be investing in the real estate value of your property.

* Take the mud out of the room. You don’t have to allow the mudroom to live up to its name. Consider installing a Fiat Molded Stone mop service basin with a multifunction hand shower to give your family a convenient and stylish spot to wash off boots and other bulky items. It’s also a great place to give your dog a bath or wash off dirty paws to ensure nothing is tracked into the house.

* Shed a little (more) light in your foyer. Your foyer is the entry point into your home, and the right lighting solution can make this space all the more welcoming. Newer LEDs or halogen light sources naturally generate a warmth that’s perfect for the entryway. Be sure to install a dimmer switch with your new lighting solution; it’s the best way to ensure your lights provide exactly the right ambiance for your entrance hall.

* A masterful master bath. Perhaps no room is more capable of providing luxurious relaxation than your bathroom. If yours isn’t living up to this billing, it may be time for some changes. The DXV Oak Hill bathroom collection offers a freestanding slipper tub for ultimate bathing comfort, along with a stylish high-efficiency toilet with a unique traditional farmhouse style. A coordinating high-back sink accented with a charming wall-mount faucet can finish off this bathroom remodel for ultimate enjoyment and function. This may be just the spruce-up needed to enhance your personal space, while adding value to your home at the same time.

* Make your outdoor space amazing. Once the weather turns warm, spending time outdoors will be top on your list. That makes now the perfect time to plan how you’ll use this outside space. A pergola is an easy-to-build addition that can give you a relaxing place to avoid the sun. Adding a flagstone seating area or creating a decorative border for a new fire pit might be perfect for your family. Try planting flowers for a pop of color, or invest more with new bushes or trees to round out your landscaping project. Plants like day lilies or hostas can survive in almost any environment and are an easy, effective way to optimize your green space.

* Shower power for all. For the all-purpose family bathroom, upgrading to a highly functional shower system will deliver results efficiently and enjoyably for all users. The American Standard Spectra+ shower system employs first-to-market technology that allows you to change the spray patterns simply by touching the outside ring of the showerhead for a customizable experience. The Spectra+ eTouch system also includes a remote control that can be mounted to any surface, allowing anyone having trouble reaching the showerhead to enjoy the same personalized shower satisfaction. It’s luxurious and accommodating. What could be better than that?

Finding the perfect project for you

The spring season is home improvement season, so don’t let it pass you by. Start thinking now, while staying warm inside during the colder months. Figure out what needs to get done first, then look online or in stores for ideas and get inspired for your spring home renovations. It will be project time before you know it.

2018-01-03T13:01:00

(BPT) – With the newly passed tax reform bill, the Tax Cuts and Jobs Act (TCJA), now is the time to start thinking about how this will affect you so that you can plan ahead for the outcomes you will start to feel in your paycheck as early as February 2018.

This tax reform affects virtually everyone; however, families, homeowners, residents of high-tax states, the medically uninsured and small businesses will be especially affected. Most taxpayers will experience changes that could reduce or increase their taxes owed. If you’re not sure how this may affect you, here is a summary of possibilities.

Families

Like most taxpayers, many families will be affected by the loss of personal and dependent exemptions of $4,050 per person. However, families with income under $200,000 ($400,000 for joint filers) will be eligible for an increased child tax credit of $2,000. Those with income over that amount may be eligible for a smaller credit. This, along with larger standard deductions, may or may not make up for the loss of the personal exemption. Families with dependents over the age of 16 may also qualify for a new family tax credit of $500 for each dependent who does not qualify for the child tax credit.

Homeowners and residents of high-tax states

Homeowners and residents of high-tax states like California, New York and New Jersey, who typically itemize because they have large expenses like real estate taxes and state and local income taxes, may not be able to get the full tax benefit for these expenses, which are capped at $10,000. Some may not find it worthwhile to itemize going forward. Itemizing deductions is only worthwhile if all expenses exceed the standard deduction.

Medically uninsured

Starting in 2019, there will no longer be a penalty for those without health insurance. The penalty, which had become more and more expensive since first implemented in 2014, will not apply to taxpayers without insurance in 2019. Taxpayers who did not have insurance for all of 2017 and do not expect to be insured in 2018 need to make sure to talk to a tax professional, who can help you identify if you qualify for a penalty exemption.

Small-business owners

Some of the largest changes in the tax reform legislation apply to businesses, both large and small. These changes may also affect some rental activities. Corporations will see their top tax rate reduced to 21 percent from the current top rate of 35 percent, starting in 2018. Pass-through entities (LLCs, partnerships and S corporations) and self-employed individuals will be able to deduct 20 percent of their business income, subject to some limits (based on the type of business and income) and phase-outs (based on the partner’s/shareholder’s total income).

Retirement

Under the current law, taxpayers can reconvert a Roth IRA into a traditional IRA. This allows taxpayers to avoid paying high tax bills on an amount of money that had fallen in value after the conversion. Now, taxpayers will no longer be able to reconvert a Roth IRA to a traditional IRA.

The bottom line is that with this new tax legislation, you’re still going to need to get your documents in order and file your taxes, as well as decide if you’re going to itemize and what deductions work for your personal situation. This year, it’s more important than ever to talk to a tax professional about how this affects you to ensure that your taxes are done right and that you have a clear understanding of how changes that take effect in 2018 will impact how you file in 2019.

To learn more about the tax reform, how it may affect you and what steps you can begin taking to reduce what you owe in 2018, visit www.hrblock.com or make an appointment with a tax professional.

2018-01-05T07:01:00

(BPT) – Life changes — getting married, having a baby, buying or selling a home, sending a child off to college or retiring — often come with changes to your tax situation. Overlooking these changes when filing your taxes can lead taxpayers to make mistakes that leave money on the table, potentially impacting their refund at a time when the average refund is about $2,800. Here is a list of common tax mistakes to avoid in the 2018 filing season to help ensure you don’t miss any deductions or credits that you deserve.

Using the correct filing status

One of the most common mistakes taxpayers make is selecting the wrong filing status. A taxpayer’s filing status can affect which credits and deductions they’re eligible for, the value of their standard deduction and their tax bracket. One situation that can make choosing a filing status difficult is when more than one filing status seems to fit. For example, if a taxpayer with children is in the process of getting a divorce, they may not be sure if they should file as married filing jointly or married filing separately or, in some instances, whether they qualify to file as head of household. In this case, the taxpayers should run the numbers to see if filing jointly or separately is more to their advantage rather than guessing.

In addition, common clerical errors such as mixing up names, forgetting to include information reported on your W-2, 1099 or other forms, or even making mathematical errors can also affect your tax benefits.

Commonly overlooked credits and deductions

Most taxpayers file their taxes using the standard deduction, but you may be eligible for a variety of itemized deductions that could possibly save you more. Also, you may be eligible for “above-the-line” deductions and tax credits, none of which require you to itemize. And it’s important to note that the newly passed tax reform generally does not impact these credits or deductions until you file your 2018 tax return in 2019.

Earned Income Tax Credit for lower-income workers:

Twenty percent of eligible taxpayers, particularly lower-income workers, do not claim the Earned Income Tax Credit (EITC). Depending on their income and the number of children they have, these taxpayers may be eligible for an EITC of $503 to $6,242. Since eligibility can fluctuate based on financial, marital and parental status, taxpayers can be ineligible one year and eligible the next.

Under the PATH Act, taxpayers who claim the EITC and who file early will have their refunds delayed until mid-February. Despite the delay, taxpayers should file as they normally would to get their refund as soon as possible.

Education credits:

Depending on your academic program, what year the student is in, income and other restrictions, there are federal tax credits that can help offset the costs of higher education for yourself or your dependents. To qualify, you must pay for post-secondary tuition and fees for yourself, your spouse or your dependent. Depending on the criteria, a student may use the American Opportunity Credit of up to $2,500 or the Lifetime Learning Credit of up to $2,000.

Itemizing deductions:

Itemizing can save taxpayers hundreds of dollars, as only one third of taxpayers itemize but millions more should — especially homeowners. Owning a home is often the key that unlocks itemization, but some taxpayers with high state taxes and charitable contributions may also be able to itemize.

Itemizing enables eligible taxpayers to take deductions such as:

* Charitable donations

* Medical expenses that exceed 7.5 percent of adjusted gross income

* Personal property taxes

* State income or sales taxes

* Casualty losses such as a fire, hurricane or earthquake

* Mortgage interest payments

Not filing

On average, the IRS announces annually that approximately $1 billion goes unclaimed in federal tax refunds. Taxpayers can claim a refund for up to three years after the filing deadline. So, in addition to filing your 2017 return, keep in mind to file your 2015 return by April 17, 2018. If not, you will lose your 2015 refund. There is no late-filing penalty if a taxpayer is due a refund. Also, even if you are not required to file a return, you may be entitled to a refund.

Taxpayers who want to ensure they get the maximum refund without a delay should visit https://www.hrblock.com/offers/refund-advance/ to see if you are eligible for a Refund Advance, or you can make an appointment with a tax professional.