Category: Brandpoint Business & Finance

2021-02-19T10:31:00

(BPT) – You may check your bank balance daily, your savings accounts regularly and you probably know roughly how much cash is in your wallet. But if someone asked you what your credit score is, would you be able to answer? Your credit score is an important tool in building wealth in ways you may not even realize, so it’s important to not only know what it is, but take proactive steps to maintain it.

“A credit score is more than just a number; it’s one of the main keys to financial success,” says Barrett Burns, president and CEO at VantageScore Solutions, a credit score model developer used across auto, banking and credit card industries. “Benefits of a good score go far beyond qualifying for a loan to really help build wealth now and in the future.”

Burns shares five ways a strong credit score can help you transform your finances and position yourself for success throughout life:

Qualify for a mortgage

Many financial experts agree that a mortgage is a key strategy to build wealth long term. With a strong credit score, you can qualify for a mortgage, which helps you get the home you want and start building equity. You’ll also qualify at a lower rate with a rich credit history of on-time payments and positive debt management.

Access premium credit cards

Some credit cards are selective on who qualifies. This is because they may have a special program with exclusive offers, cash-back and other rewards that can add up fast. When you have a good credit report you are more likely to qualify for the best credit cards for your personal needs so you can optimize your personal finances.

Receive better interest rates

Shop around, different lenders could give you different rates. When you have a good credit score, you may qualify for much better terms on loans. That lowers interest rates on things like car loans. Depending on the size and length of the loan, a low interest rate can save you hundreds or even thousands of dollars over the life of the loan.

Get negotiating power

Don’t like the loan terms offered to you? When your credit score is high and you have a good credit history, you have leverage to try to negotiate better loan terms, including lower interest rates. Ask for better terms noting your great credit score and let the lenders make you a deal.

Have options during emergencies

Sometimes the unexpected happens and can throw your finances off track. Having a good credit score can help you leverage financial options that you may not have access to otherwise. This can relieve stress and help you avoid losing any more money than necessary.

VantageScore credit scoring models provide lenders and consumers with highly predictive credit scores that are easier to understand and score more people. You can access yours for free through the providers at vantagescore.com.

2021-02-19T07:01:00

(BPT) – As part of their ongoing “Small Business Recovery Series” study, Block Advisors revealed that Black-owned small businesses have been disproportionately hit from the pandemic. Minority-owned businesses play a vital role in communities everywhere, and Block Advisors is committed to helping them survive and thrive. Learn more at BlockAdvisors.com.

2021-02-18T14:55:26

(BPT) – Of all the milestones in our nation’s COVID-19 recovery, workplaces reopening is one of the biggest. As millions of people start returning to offices, classrooms and more, the hope of progress is tempered by concerns for safety. Everyone deserves to feel safe at work. How can employers help make that happen?

The key is planning ahead, says Christopher Gill, vice president of EnviroPro Solutions. “Having enough supplies, the right equipment and clear information — all of these are important. They do more than just keep the workplace safe and sanitized. They help employees feel confident about returning.”

Here are 5 easy steps employers can take to help build trust and stay safe.

Pick up plenty of PPE. The bare minimum should include disposable masks and hand sanitizer. Depending on the sanitizing steps your business is taking, gloves and goggles may also be necessary. Designate a clear responsible party who will be in charge of tracking supplies and re-ordering.

Post or share information on the supplies available, where employees can access them and who to report any shortages or concerns to.

Re-assess restrooms. Restrooms should always be well-stocked with soap, hot water and paper towels. Increase the frequency at which restrooms are checked for supplies and sanitized. This is even more important if your facility’s restrooms are open to the public.

For large restrooms, consider closing off some stalls and sinks to limit the areas that require frequent sanitizing. Placing out-of-order signs can help deter use. Post clear instructions for handwashing — it should be done for at least 30 seconds with hot water and soap.

Scale back shared spaces. Shared spaces may mean break rooms, employee kitchens, copy rooms, lobbies, supply closets or more. If any of these spaces aren’t strictly necessary, consider closing them off. This will discourage congregating and limit the areas that need frequent sanitization. For shared spaces that stay open, limit furniture and supplies to the absolute essentials. This may mean reducing seating and tables, or removing communal dishware.

It’s also vital to establish clear expectations for sanitizing shared spaces before and after every use. Prominently post and share sanitizing guidelines with all staff. Include information on where sanitizing equipment will be stored and how it can be accessed and used. To help ensure everyone follows guidelines, look for a sanitizing solution that’s fast and easy-to-use, like electrostatic sprayers from enviroprosolutions.com, made by Victory or Graco.

Sick? Stay home. Wherever possible, encourage employees to stay home or work from home if:

• They are experiencing any symptoms of illness.
• They suspect they may have been exposed to someone with COVID-19.
• They have just returned from traveling.
• There have been any changes to their household, such as a child returning from college.

The Centers for Disease Control (CDC) provides guidelines for length of self-quarantines and more in their Guidance for Businesses & Employees page.

Provide proper equipment. Empowering employees is the best strategy for building trust. When it comes to sanitization, providing individual sanitizing tools is a terrific way to empower. Some companies offer kits to keep multiple employees in-stock at once, such as the Millennium Q Viral Disinfecting Kit. When every employee has their own set of supplies, they can take full responsibility for the safety of their workspace.

Even with shared workstations, having dedicated sets of sanitizing tools is highly effective. Post or share clear instructions on how to sanitize and the necessary frequency. Particularly for shared workstations, it’s advisable for employees to sanitize before and after every shift.

After more than a year at home for some workers, returning to the workplace is an enormous step. Emotions may be running high, and it’s up to employers to set a positive example and tone. Making your dedication to safety clear and tangible will boost employee confidence, all while keeping your workforce healthy.

2021-02-18T12:01:00

(BPT) – With 2021 underway, Americans are still coping with the monumental impact the COVID-19 pandemic had on the economy last year. According to a study from the Pew Research Center, more than 40% of Americans lost their jobs or faced reduced wages in 2020. Many of them may have received unemployment benefits for the first time, not realizing those benefits are taxable as federal income and, in many states, also taxable income.

For the majority of Americans, their financial confidence for the year is tied to their tax outcomes, and surprises at tax time can shake that confidence. Now, those experiencing unemployment or dealing with the stress of making ends meet are facing new financial complexities and uncertainties in filing their 2020 taxes and, potentially, an unexpected outcome. A recent study by H&R Block uncovered 56% of Americans have more tax questions than last year due to the pandemic, with unemployment topping the list. To help with the increased confusion, H&R Block is offering many ways to navigate pandemic-induced tax complexities with help that blends digital services with human expertise and care.

The experts at H&R Block are ready to answer any questions tax filers have. In fact, here are the top questions people had in the survey, along with answers.

Q: Do I need to file taxes if I’ve been unemployed?

A: It depends on your specific situation. Even if you don’t have an income over the $12,400 single filing threshold, you may still need to file a return. The state sends a copy of your 1099-G to the IRS, meaning they have a record of your unemployment income. If you receive a 1099-G and don’t file a return, you are likely to get a letter from the IRS. Filing can allow you to recover any federal taxes withheld over the amount you owed. Filing also helps you determine if you are eligible for credits like the earned income credit, or additional child tax credit, and for people with educational expenses, the American opportunity credit. These credits can increase your refund even if you aren’t required to file.

You can get help navigating the impacts of unemployment benefits on your tax situation by working with an H&R Block tax pro virtually, in an office, or online. Understanding your situation and the next steps is easier when you have experts who know the impacts on your situation.

Q: Do I have to pay taxes on unemployment income?

A: Many people don’t realize unemployment benefits are taxable. You might not have known taxes can be withheld when you signed up for benefits or you may have opted not to withhold taxes. Either way, make sure you understand your current situation — evaluate income from earlier in the year and any taxes withheld — and use that knowledge to create a plan for your new outcome. Tax calculators can help you understand how much you owed in taxes for 2020, allowing you to make a plan for 2021 taxes.

Q: How does unemployment impact my refund?

A: Without withholding taxes from unemployment benefits, it is possible to be surprised by a tax bill or a significantly reduced refund. However, a reduced income or unemployment during 2020 may also mean you can receive stimulus payments you didn’t receive because your income was too high in the form of a recovery rebate credit on your tax return. Depending on your situation, the credit could increase your refund or reduce your taxes owed.

Another important thing to know is that a reduction in income may mean you are now eligible for the Earned Income Tax Credit for the first time. For those who qualify, it can be a substantial credit. H&R Block has the expertise you need to get all the credits and deductions you deserve, whether you want to file with the help of a tax pro or on your own through online with H&R Block Free Online which includes unemployment tax forms.

For help understanding the tax implications of unemployment benefits, visit H&R Block’s unemployment and taxes resource center.

2021-02-17T17:05:00

(BPT) – Even during the best of times, managing a small business is a daunting undertaking, let alone doing so during a pandemic. If your business has survived COVID-19, it’s likely you’re still struggling just to make ends meet and don’t need the added stress of figuring out complicated taxes. You started your business to pursue a passion, not to think through the tax implications of PPP, EIDL and myriad other confusing programs (and acronyms) surrounding stimulus-related relief. However, in three easy steps, you can set yourself up for tax-time success.

Step 1: Get organized

To avoid unwelcome surprises, it’s important to get organized ahead of the April 15 tax-filing deadline. But during a pandemic — when so much is uncertain — it’s even more critical.

If you took a PPP loan in 2020 and you have not already done so, now’s the time to gather the necessary paperwork to apply for PPP loan forgiveness. This may include bank account statements, payroll documents, proof of paying employment taxes, mortgage statements (or rent/lease agreements), utility bills and any other documentation that shows you meet the requirements for loan forgiveness. See the next section for additional expenses that qualify for forgiveness.

Next, you’ll need to contact your lender and complete the correct loan forgiveness application. Your lender can help you identify and provide you the correct form to use.

Step 2: Get smart about your taxes

If taxes intimidate you, there are still a few key things to know heading into this tax season. First, money received from your forgivable PPP loan will not be included in your gross income at the federal level (but check with your state to see if the loan is taxable on your state return).

Also, expenses covered by your PPP loan are still tax deductible, so it’s a “double-dip” tax benefit. Qualifying expenses include payroll, rent or lease payments, mortgage interest and utilities, and have recently been expanded to include:

• Personal Protective Equipment (PPE) and costs for adapting your business for health and safety compliance
• Essential supplier costs to keep your business open
• Property damage due to public disturbances, provided it wasn’t covered by insurance
• Operational expenses for payments on software and other accounting or HR services

You may also be eligible for other small business tax breaks, including the Employee Retention Tax Credit (ERTC), which is a refundable tax credit aimed at helping small business owners keep employees on their payroll, even if business has slowed down considerably or your finances took a significant hit from the pandemic. Recent legislation extended the ERTC through June 30, 2021. Unlike loans, you don’t have to apply for the ERTC — it’s a credit on a business’ employment tax returns (Form 941 or 944 for most employers).

Without becoming a tax expert overnight, how can you be sure you’re getting all the tax credits, deductions and deferrals you’re entitled to?

Step 3: Get help

Complicated times can make for complicated taxes. When your finances are involved, it’s generally a good idea to get expert help. Connect with a Block Advisors small business certified tax pro to help you make sense of the tax impacts of COVID-19.

“H&R Block has helped millions of small business owners do more of what they love by doing what we do best,” said Ian Hardman, General Manager and Vice President of small business at H&R Block. “We know small business owners are confused about how stimulus-related aid will impact their taxes this year, but they don’t have to go it alone. Our tax pros have an average 12 years of experience and can help small business owners get every credit, deduction and deferral they deserve.”

Block Advisors, a team within H&R Block, is dedicated to meeting the tax, bookkeeping and payroll needs of small business owners year-round. To start working with the tax experts at Block Advisors, visit blockadvisors.com.

2021-02-17T09:01:00

(BPT) – As 2021 starts heating up, it’s time to look ahead and think about the personal finance trends that will impact consumers as they bank, invest in homes, search for cars or build financial literacy. Bank of America expects these five trends for the year ahead.

2021-02-17T08:01:00

(BPT) – Since the start of the pandemic, many consumers have opted to bank digitally to manage their finances safely and conveniently from anywhere. In fact, a recent survey by Chase found that 54% of consumers said that they have been banking more digitally due to the pandemic.

Among the many features available today, fraud alerts, electronic bill payments and mobile check deposits have become leading consumer favorites when banking online or by phone. If you thought that this trend was only limited to younger generations, you’d be wrong. Since March 2020, over half of Chase’s new digitally active customers are over the age of 50.

“The pandemic has demonstrated that digital banking is essential for consumers of all ages to confidently manage their finances,” said Allison Beer, head of Digital at Chase. “This new research reaffirms our commitment to creating features that make it easier and faster for customers to bank digitally.”

Here are a few ways you can make the most of your bank’s mobile app.

Keep a close eye on your spending

Curious to know how you’re spending your money each month? Do you know what you spend on food delivery, groceries, subscriptions? You can take advantage of features within mobile banking apps to help you easily track your expenses.

While there are many apps out there that can do this, it’s likely your bank offers a free and easy-to-use app as well. You can also set up account alerts to know when you get paid or make a transaction with your debit or credit card.

Some banks, like Chase, even include personalized dashboards in their apps to give customers an easy-to-digest overview of their transactions and financial trends. This can help you better understand how you are doing financially and help you with your spending and savings goals.

Prep for a rainy day

Setting money aside in your savings account can be important for your overall financial health, and may help you recover from any emergency expenses. If your bank offers it, set-up automatic transfers to your savings account each time you get a paycheck. All you have to do is set it and forget it to get started on your savings goals.

Make contactless payments safely and securely

This year, more consumers and businesses will be using digital payments as their popularity continues to grow.

COVID-19 has changed people’s attitudes toward cash. In fact, Chase found that 13% of consumers said that they use cash less as a result of the pandemic. Digital payments have become even more popular as they are contactless and make it easier to track finances and send money to friends and family quickly and safely.

For example, peer-to-peer (P2P) payments, like Zelle, are increasingly being used to send money or to split the cost of bills. The survey revealed almost half (45%) of longer-term users are using P2P payments more often than they did a year ago.

To explore digital tools that can help you manage your money from anywhere, visit www.chase.com/mobile.

2021-02-15T23:01:00

(BPT) – Today’s U.S. housing market is leaving many prospective homebuyers priced out. Homes, on average, have become less affordable, and the ones that are affordable are in short supply. As a result, 55% of future homebuyers believe that homeownership is out of reach for them financially, according to recent Fannie Mae research.

However, while affordability and supply constraints have weighed on many prospective homebuyers, homeownership education has the power to help people prepare for the homebuying process and successful homeownership. As an industry, we have an opportunity to dispel mortgage qualification misconceptions that prospective homebuyers have and, at the same time, educate housing professionals about ways to better meet their needs.

In the same study, future homebuyers were asked to demonstrate their knowledge of the mortgage process and the affordable options available. Among respondents, 73% were unaware of lower down payment options that range from 3% to 5% of a home’s purchase price. This is an important realization, considering that 31% cited not being able to come up with a down payment as one of the key challenges holding them back from homeownership. These findings align with a 2018 Fannie Mae survey in which many of the 3,000 respondents overestimated the minimum credit score and down payment necessary to qualify for a mortgage, and remained unfamiliar with low down payment programs.

This lack of mortgage knowledge and understanding might seem bleak, but it is actually a great opportunity for our industry to provide educational resources. Fannie Mae research found that 64% of future homebuyers said that they expect mortgage lenders to educate them on the process, and 63% said they want mortgage lenders to show them the right mortgage options for their needs. This demonstrates that many of the barriers preventing more homeownership can be overcome with more outreach and deeper engagement.

Fannie Mae offers many resources to help educate homebuyers about their options to purchase a home and show them how to stay in that home if they experience financial hardship. Educational resources available through KnowYourOptions.com, the Framework^® homeownership education course, and HomePath.com can help homebuyers better understand the mortgage process and what’s possible within their budget.

Fanniemae.com also offers a wide range of materials for lenders and real estate professionals that can help them serve more prospective homebuyers who may need help preparing for long-term homeownership. This can help to ensure that borrowers are not only ready to purchase a home, but that they understand and are prepared to manage the responsibilities of homeownership.

The obstacles to homeownership are very real for many people. However, education is a powerful tool in helping prospective homebuyers better understand their buying power, know what options are available to them, and prepare for sustainable homeownership. Fannie Mae, along with lenders, real estate professionals, housing counselors, and others can all play a role in helping prospective homebuyers become successful homeowners.

Visit FannieMae.com/Affordable and read more about our approach to making housing more affordable

See our Infographic to learn more about the power of borrower education

RESEARCH SOURCES:

Fannie Mae, “Future Homebuyers,” Single-Family Strategy & Insights unpublished research (November 2019). | Fannie Mae, “Manufactured Housing,” Single-Family Strategy & Insights unpublished research (December 2019). | Fannie Mae, “Builders,” Single-Family Strategy & Insights unpublished research (December 2019). | Fannie Mae, “Consumers Continue to Overestimate Mortgage Requirements,” Economic and Strategic Research (June 2019). | Hickey, “2019 State of the Nation’s Housing Report: Lack of Affordable Housing,” Habitat For Humanity (2019).

2021-02-12T23:01:00

(BPT) – Deb Mallin, Forbes Councils Member

Forbes Nonprofit Council

Founder of LiteracyMatters.org, a foundation on a mission to close the literacy gap with scalable, ethical technology & evidence-based instruction.

As 2020 came to a close, were you looking at the glass half full, or depending on the day, half empty after almost a year of surviving the pandemic? In 2021, millions of American families will continue to struggle to put food on the table, while others will have children set up, sitting up, and eager to join virtual classmates and teachers, in Zoom classrooms across this nation. If they have access to the internet and equity in education — that’s a big, powerful word — if. And if not now, when?

When the vaccine makes its way across the country and schools hopefully reopen, there is a question we will have to address as a nation: What becomes of the preexisting condition and national crisis of illiteracy that continues to destroy the future of our nation’s children? How many children have fallen even further behind this year because we did not innovate to educate, reach and teach all children how and where they learn?

According to research from Gallup and the Barbara Bush Foundation for Family Literacy, low adult literacy rates could be costing the U.S. economy $2.2 trillion in GDP. The research found that roughly 130 million adults in the U.S. are “reading below the equivalent of a sixth grade level.” Reading levels in grade school-aged children have been stagnating and even dropping off. In 2019, national average reading scores for fourth and eighth graders were slightly below average reading scores in 2017.

Whether we look at the data on our failing education systems as a travesty of justice or from the lens of an economist astounded by the loss of human capital, there are questions we should be asking. If the definition of insanity is doing the same thing over and over and expecting a different outcome, we should apply this principle to our education efforts.

Why haven’t today’s classrooms changed much in the way they look and operate over the past several decades? Why, in 2020, in this rapidly advancing, digital age of technology and machine learning and AI, are we still teaching children as though they rode to school in a horse-drawn buggy? We scaled Braille across this nation in 1918, during the time of the candlestick phone and the 1918 flu pandemic. Why can’t we provide the fundamental skills of literacy, a sound-to-symbol and symbol-to-sound system that teaches the English language?

Who benefits when children are unable to move from learning to read to reading to learn? Access to evidence-based, whole child-centered learning is not a pie. We don’t need to ration piece by piece when we have the ability to democratize education. There is more than enough pie for everyone. We all do better when we all do better.

As nonprofit leaders, we have the immense responsibility to redefine and rethink how we approach our education initiatives. I challenge you as leaders to rethink how we provide sustainable systems change, starting with acknowledging that our efforts are dramatically diminished if we continue to work in silos. Collaboration, partnerships and coalitions offer us opportunities to strengthen our impact by harnessing the power and resources our fellow nonprofits have to offer.

As leaders in the education space, let’s commit to supporting the best of both proven and innovative ways of approaching this generation’s national epidemic of illiteracy. I believe we can deconstruct the problem and mobilize an all-American effort to provide equity in education, with teachers properly trained in the science of literacy instruction, scalable individualized curriculum and the use of ethical technology that makes it all possible.

Another crucial element to our efforts is to educate ourselves on political candidates, state budget proposals and public-private partnerships that commit to targeted and accountable literacy education initiatives. We are the players who can evoke real change and advocate for greater education in-roads. The ROI isn’t just for the children we’ll teach. It’s exponentially significant to the donors who invest in our nonprofits — and for society as a whole.

As a nation, we can accept the hierarchy of responsibility and work together to make 2021 be the year we apply the lessons learned from the pandemic and scale literacy and justice for all.

2021-02-09T06:01:00

(BPT) – The past year has presented countless challenges, and for many, a reassessment of goals — especially when it comes to finances. A new survey shows attitude shifts including a renewed effort to gain control of finances, especially through increased saving and getting professional advice.

Even Americans who did not lose work lost a sense of confidence in the economy. The survey by Harris Poll for Empower Retirement and Personal Capital reveals a change in attitudes about finances from April — as the pandemic’s effects were beginning — to December of 2020. Despite the stock market rallying after the initial lockdowns, only 22% of survey respondents from December said they felt optimistic about their finances, as compared with 29% from the April survey.

With the turmoil of the last year, 2/3 of respondents said they were bracing for financial pain in the event of future lockdowns, with 44% concerned about losing money on investments. Reacting to uncontrollable world events, one theme emerged: People want to feel more in control of their own finances, whatever comes next.

These tips can help you feel more confident financially, no matter your circumstances.

1. Save what you can

There’s no better buffer against unexpected emergencies — anything from car breakdowns to job loss — than an emergency fund. Financial professionals recommend saving at least three to six months of expenses to be prepared for emergencies.

Sound daunting? Start small, and consider setting up automatic deposits into a savings account with each paycheck, to save without thinking about it. Even a few dollars per pay period can add up over time.

2. Invest in your family’s future

According to the survey, parents are concerned about the pandemic’s impact on their children’s education, but many believe the crisis will lead to a fundamental shift in higher education. Nearly 6 out of 10 (59%) expect student loan debt forgiveness to become more common, and half believe the pandemic will make higher education more accessible in the long term.

If your children are college bound, have a conversation with a financial professional or your child’s high school guidance counselor about how financial aid works and what strategies may benefit your family. If you have young children, look into a 529 college savings plan in your state, which can provide both tax and financial benefits.

3. Don’t forget retirement

Whether you’re approaching retirement age soon or it’s years away, consider taking full advantage of your employer’s matching funds for your 401(k) contributions. Ask your HR department about how to fully utilize all your available employer retirement benefits, and increase your retirement savings percentage now if you can. Your future self will thank you.

4. Consider your HSA account as part of your retirement strategy

If your company offers a health savings account (HSA), remember that any unused funds can be saved up to be used during your retirement — adding to your future financial stability. When you do need your HSA for medical expenses, check with your employer to see how it can best be used. An HSA can help pay for qualified medical expenses including prescriptions, medical tests and treatments, including many vision and dental expenses.

5. Consult a professional

Given the turmoil of 2020, Americans are focusing on fundamentals: cutting spending, increasing savings and safeguarding investments. Over half the survey respondents sought financial guidance related to the election. As uncertainly continues, an increasing number are seeking professional help to make financial decisions and plans.

“A good financial professional can provide not just advice on saving and investing, but financial wellness recommendations on everything from building a budget and starting an emergency fund to managing debt,” said Edmund Murphy, president and CEO of Empower Retirement.

A financial professional can help you set priorities and find the best vehicles for protecting and growing your money. Ask your employer if your retirement plan provider offers financial advice through virtual sessions or phone calls with a professional. You may also be able to access digital tools that help you calculate how close you are to your retirement goals, along with ways to monitor your investments.

For more tips about financial planning, visit Empower-retirement.com/empower-insights.