Monthly Archives: April 2020
Scams on the rise during COVID-19
During national or global disasters, many criminals use this as an opportunity to prey on people when they’re the most vulnerable. As the coronavirus continues to wreak havoc, scams are on the rise, too. It’s critical to be vigilant and make yourself and your family members aware of these schemes, so you and your loved ones don’t fall victim to fraud.
Work-from-home scams
With unemployment rapidly increasing, this leaves many people desperate for any job they can find. Unfortunately, this is the perfect opportunity for criminals to use this to their advantage. Fraudsters are posting work-from-home jobs that promise easy money with no effort—your first red flag. These scammers often communicate through web-based services, like Gmail or Yahoo.
Their ultimate goal is to use you as a money mule—allowing others to use your bank account or conduct financial transactions on your behalf. Not only is this illegal, but this also puts you in financial jeopardy. These criminals could have access to your bank account and completely drain it. If a job posting seems too good to be true, it probably is. Listen to your gut—if someone who claims to be an employer is asking you to transfer money or is asking you to open bank accounts in your name for their business, contact authorities immediately.
People claiming to be overseas and needing help
Watch out for people claiming to be overseas and needing help. Criminals are pretending to be a member of the military or a U.S. citizen working or quarantined abroad, asking potential victims to send money on behalf of themselves or a loved one battling the coronavirus. Fraudsters are also claiming to work for a medical equipment business or charity asking people to send money on their behalf. These requests are typically seen in the form of emails, phone calls, or private messages. If someone you don’t know is contacting you for money, chances are, it’s not legitimate.
Criminals making these claims cause serious damage. Not only does it harm you and your family, but it also harms people who need financial help and organizations that heavily rely on monetary donations. When donating, never pay with cash, gift card, or by wiring money.
Relief payment scams and phony emails
As relief payments roll out, many scammers are taking advantage of this opportunity as well. The most important thing to know is that you do not have to do anything to receive your stimulus payment. As long as you filed taxes in 2018 or 2019, you’ll receive a payment. So, if someone claims you must “sign up” to receive your relief payment, or calls asking for personal information, like your social security number or bank information, that person is a scammer.
Also, watch out for phishing emails from people claiming to work for the government. People will claim to be from the CDC or WHO offering information pertaining to the coronavirus. Don’t click links from sources you don’t know. Visit coronavirus.gov or usa.gov/coronavirus for official, reliable information.
What to do if you think someone is trying to commit fraud
If you believe a fraudster is trying to scam you, it’s important to act quickly. Gather evidence, whether it’s emails, receipts, or phone numbers, and report the scam to the appropriate authorities. Afterwards, be sure your accounts are secure and watch for any fraudulent activity. More than ever, it’s especially important to be observant, so you or your family members don’t become victims of these crimes.
For more information on COVID-19 scams, as well as how to protect yourself, visit fbi.gov or consumer.ftc.gov.
The Paycheck Protection Program: What is it and what does it do for small businesses?
Congress recently approved an additional $310 billion in funding for the Paycheck Protection Program as part of the CARES Act, the stimulus bill created in light of the economic downturn due to COVID-19. We’ve broken down the basics of the Paycheck Protection Program for small business owners, so you can understand how to navigate the program and receive funds as quickly as possible.
What is the Paycheck Protection Program?
The Paycheck Protection Program, otherwise known as the PPP, is the driving factor in the small business portion of the coronavirus stimulus package. The PPP is a forgivable loan that allows small businesses to continue paying their employees, mortgage interest, rent, and utilities, over eight weeks. It’s intended to help businesses keep their workforce employed during the COVID-19 pandemic. Businesses can receive up to $10 million, or 2.5 times their monthly payroll.
Who is eligible for PPP?
Small businesses—companies with fewer than 500 employees—can apply for PPP loans. Businesses must demonstrate that they have been negatively affected by the coronavirus. Qualified businesses include any business categorized under “accommodation or food service,” such as restaurants or hotels, with 500 or fewer employees, tribal businesses, independently owned franchises, self-employed workers, independent contractors, sole proprietors, or gig workers.
Where can you apply?
PPP loans are managed by certified Small Business Administration (SBA) lenders. You can apply for a PPP loan through approved SBA lenders or any federally insured depository institution, federally insured credit unions, and Farm Credit System institutions. Talk with your preferred lender to see if they’re participating. The SBA also has a lender search tool on their website. If you have already applied, check with your lender to verify your application status. The deadline to apply is June 30th, 2020, when the program ends, but you should apply as soon as possible. You should only apply through approved SBA lenders—many scammers are using this time of desperation as an opportunity to take advantage of people. Legitimate lenders will not ask for your Social Security number, bank account, or credit card numbers upfront.
As the SBA accepts loan applications, Georgia’s Own will process member requests in the same manner in the order they are received: please submit your contact information to [email protected]. In your email, please include the business name, type of industry and if you are business or retail type, number of employees, and contact information, such as an email address and/or telephone number.
How does PPP loan forgiveness work?
If you use the loan for anything other than payroll costs, mortgage interest, rent, and utilities throughout the loan, your loan will not be forgiven. Also, it’s only forgivable if you keep all your workers. So, if you previously laid off employees, you’ll need to rehire them. You can submit a request for loan forgiveness through your lender. The number of full-time employees and pay rates, as well as payments on the eligible mortgage, lease, and utilities will need to be verified. However, the loan carries a 1% interest rate that must be paid back within two years—payments can be deferred for six months.
For more information on loan resources for small businesses, visit sba.gov. And, to see how Georgia’s Own is helping members, small businesses, and the community during this time of need, visit our website.
What to do with your stimulus check
Under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, most tax-filing Americans making less than $75,000 per year are receiving a $1,200 stimulus check—as well as a $500 check for every child under the age of 17. Most people are hopeful for this financial relief—but what should you do once you receive your stimulus check? We have a few suggestions to help you use your check wisely.
Use it for expenses
The primary purpose of this check is to help people survive without a source of steady income. Therefore, one of the best things you can do with your stimulus check is to use it for essentials, like groceries, gas, or other expenses you might have. Like a tax refund, it can be tempting to spend your stimulus check on something nice or new—especially because shopping is at your fingertips right now. However, try to avoid spending your check on unnecessary items.
Put it towards your savings
If you have enough money to get by comfortably, saving your stimulus check could be beneficial. Ideally, you should have at least three to six months’ worth of expenses in your savings account for emergencies. Open a savings account if you don’t have one, and hold onto your stimulus check. You don’t need to set aside the entire check, either—even if you save a portion of it, that’s better than nothing.
Pay off debt
Use your stimulus check towards any debt you may have, such as credit cards or student loans. Even though most lenders are offering deferred payments or forbearance, paying off your debt, if you can, is still the most ideal choice. Anything—no matter how big or small—you put towards your debt gets you that much closer to financial freedom.
Donate it to charity
If you can, donate a portion of your stimulus check to a charity. More than ever, it’s important to stick together and support members of the community. Dozens of charities need help—especially organizations like Action Ministries, that are providing meals for children during the extended school break. Or, organizations, like Meals on Wheels, helping high-risk senior citizens that don’t have access to food. Additionally, many groups are collecting money to help people that are out of work in the restaurant industry. This also means that many scams are escalating. Be sure to research and determine that what you’re donating to is legitimate.
Help small businesses
Lastly, if you’re financially stable, consider helping local businesses. Many small businesses are struggling to stay afloat because of the coronavirus. With social distancing measures in place, many local businesses are changing how they operate or shutting their doors altogether. To help local businesses, consider ordering takeout from your favorite restaurant or purchase a gift card from your local beauty salon to use at a later date.
The COVID-19 stimulus package is a tremendous help for many people, and we hope that these tips will help you make the most out of your stimulus check. If you need further financial assistance, please click here to see how Georgia’s Own is helping members during this time of need.
5 mistakes not to make when transferring a 401(k)
You may be worried about transferring your 401(k) – or you may be worried because all you know about 401(k)s is what you’ve learned from characters on sitcoms. Whatever level of expertise you have, it’s about to get a whole lot higher after you read our best tips for avoiding common mistakes when it comes to protecting your future.
Don’t fake it ‘til you make it
If you’re at a wedding and can’t remember a cousin’s name, it is perfectly acceptable to refer to them in vague terms until your spouse can whisper the name to you. But when it comes to your financial security, you’ll want to understand every detail. If you’re not sure about how your 401(k) works through your current job, or even if you’re not sure that you are currently enrolled in a 401(k), now is the time to ask! Better late than never, right?
Don’t be afraid to ask a lot of questions
Yes, you may feel like the world’s most annoying gnat when you sit down with your HR rep and discuss your 401(k) options and ask question after question. But asking questions is how you learn – and in your retirement years, you will be glad that you risked being banned from the HR hallway forever to ask just one more question and increase your financial knowledge.
Don’t forget to consult an expert
Hiring an accountant or tax professional isn’t always necessary, but it certainly helps you navigate your options and decide which path is the best one to take to secure your comfortable retirement. If you don’t want to use an accountant for all your financial needs, consider consulting one to help you transfer your 401(k) and guide you through the necessary steps.
Don’t skip the details
Did you know that you have 60 days to finalize your 401(k) transfer into a new account? That is just one example of the many rules and regulations that come with managing and transferring a 401(k). It is crucial that you know and understand the necessary steps in order to avoid penalties – like losing over 50% of your 401(k). Even if you are consulting an expert, do your own research to ensure that every last detail is covered.
Don’t think you can’t learn more
Once you have successfully transferred your 401(k), you deserve a pat on the back. However, that doesn’t mean you’re done managing this account! It’s important to stay up to date on trends and recommendations to keep your funds secure, along with making regular checks to ensure that the amount you think you have matches the official record. You don’t have to become an expert yourself, but keeping up with these small details can make a big difference.
A few more suggestions for 401(k) success:
- Take a class or look for webinars on the best ways to maximize your 401(k).
- Speak with trusted family members or friends to find out tips and tricks they have learned through maintaining their own 401(k).
- Ask your HR rep if there is anything additional they would recommend to facilitate a successful transfer.
- Remember that all final decisions are up to you – if a recommended step does not seem like a good fit, even after a lot of research, you don’t have to take it.
- Join a Facebook group, set up a Google alert, or find a Twitter account that has the expertise you need to allow you to stay current on any relevant information.
Your future is important – which means your 401(k) is a priority for you. Take the necessary time to ensure that you are doing everything you can to make your 401(k) transfer a complete success. And, remember: it’s always the right time to consult an expert!
How to help small businesses
Many locally owned businesses are struggling because of COVID-19. With social distancing measures in place, small businesses are either drastically changing how they operate or shutting their doors altogether. However, there are various ways you can help local businesses stay afloat. Here are five things you can do to help small businesses in your community survive:
Purchase gift cards
Gift cards are a great way to support small businesses while maintaining social distancing. By purchasing a gift card, you’re still contributing to a local business, and you can shop or go out to eat at a later date. This especially helps places that have had to completely shut their doors, like nail and hair salons or boutiques. Most places allow you to purchase gift cards on their website.
Continue to shop online
Shopping online is another fantastic way to practice social distancing and continue supporting local businesses. Despite closing their doors to foot traffic, many small businesses are still open and operating, offering curbside pick-up or delivery. Even if some businesses don’t have the option to purchase online, you can often shop by simply messaging them through social media sites like Instagram or calling the store and placing an order directly.
Get takeout
Many local restaurants offer takeout or curbside pick-up. Most restaurants are also waiving delivery fees or offering no-contact delivery—meaning the delivery driver leaves your order outside of your door. If you plan having your food delivered, try to order directly from the restaurant, so you know they’re receiving 100% of the profits. A majority of food delivery services take a portion of the profits for themselves or charge restaurants high fees.
Contribute to a fundraising campaign
If you don’t feel comfortable ordering from restaurants, you could contribute to a fundraising campaign. Many restaurants and other small businesses are starting fundraisers for their employees who aren’t working their full hours or aren’t working altogether. Most post the fundraisers on their social media pages—all you have to do is donate online. However, do your research to be sure that what you’re donating to is legitimate. And, if your favorite restaurant doesn’t have a fundraising campaign, you could even start one for them.
Share on social media
If you’re not in the place to contribute financially, that’s okay. You can still help small businesses by solely sharing their posts on social media. Share a local restaurant’s menu or a local boutique’s post about their virtual styling appointments—either way, a simple share goes a long way, and it’s greatly appreciated by many small businesses.
Trimming down your expenses: a review of Truebill
The kids are home with you, your work hours have been cut in half, and your grocery bill has increased by a rough estimate of a million(ish) dollars. To make the dollars go further, many of us are looking at ways to cut back and spend less. But how? Well, there is good news – 2009 called, and it’s telling you there’s an app for that – Truebill.
Truebill: Tell Me More
The interest in cutting costs has created a buzz around the Truebill app, which is designed to help you consolidate – and hopefully lower – your bills. Everything from your cable to your electricity to your car payment can be entered into the app.
From there, the app looks at your bills and finds ways to save. For instance, if your internet goes out for three days after a storm, Truebill negotiates on your behalf to receive a lower bill that is in accordance with the actual amount of service you received that month.
Sounds too good to be true… how much does it cost?
The app itself, along with the subsequent services, is free – however, it is important to note that Truebill does take 40% of the savings it acquires for you. So if you take our internet service example from above, let’s say Truebill manages to save you 50 bucks. They would then charge you $20 for their services. But if their negotiation did not result in any savings, you would not be charged at all.
Does it do anything else?
Yes. The Truebill app offers what it calls “Premium Services,” through which it gives you additional tips and tools on ways to manage your finances. These services run the gamut of offerings: You can speak to a Truebill team member through a chat feature, or the app will help you balance your checking account. For a full list of these services, head to the Truebill website.
Is Truebill a good idea?
Truebill does require access to your bank, credit cards, and, of course, your accounts with the companies who bill you. Any time an app asks for you that kind of information, you are wise to take a moment to think it through. But Truebill does go the extra mile when it comes to cybersecurity and provides SSL and encryption to protect your account.
Would Truebill work for me?
Most people have a lot of bills. In light of the recent events sparked by the coronavirus, more and more people are trying to find ways to save. This app can help you do that. But when it comes to your finances, you always need to be an active participant.
No app will be successful without your involvement. In other words, don’t put all your bills in the app, sit back, and not check your bank account for six months. Be diligent about your money.
Will I save money?
A recent study showed that 84% of Americans underestimate their monthly spending on subscription services. Using an app that tracks that monthly spending will go a long way in showing you where you can save, and which services you can cut altogether.
If you are paying for Netflix every month when you haven’t even watched one show since the summer of 2019, it’s a good idea to say goodbye – and the Truebill app will show you just how much you can save.
Now, more than ever, people are looking for ways to trim their budget. The Truebill app can’t replace the hours lost at your job, but it can show you what you actually spend, and guide you on the best ways to spend a little less.