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February 2014

American Reliance Group

Tips for Improving Your Credit Scores


Americans have become more informed about certain aspects of their credit scores, but many still don't know enough about the risks associated with low scores and alleged "credit repair" services. While a majority of consumers know some of the basics about credit scores, many are still unclear about some of the most important facts. For example, a majority of respondents knew that mortgage lenders and credit card issuers use credit scores. However, less than 40% knew that many other service providers also use these scores, including landlords, home insurers, utility companies, and cell phone companies. A sizable minority also falsely believe that credit scores are influenced by their age (43%) and marital status (40%). What You Can Do A typical credit score will range between 300 and 850 points. Although all lenders make decisions based on the particulars of the lending situation, generally speaking, the higher your score, the lower the perceived risk to the lender, and the more attractive the interest rate you will be offered. A score of 680 or lower will make it more difficult for you to get approved for credit and will probably increase the interest rate you are offered. Here are some tips for raising or maintaining a higher credit score: Spokane, WA 99205 Phone: 509-323-2887 Fax: 509-323-2889 www.argplanning.com 1814 N Normandie Street American Reliance Group Kelly C. Ruggles

Pay your accounts on time. Lenders are looking for a proven track record of making timely payments. Payment history determines about 35% of your credit score. Keep your balances low. About 30% of your score is determined by what the industry refers to as your "credit utilization ratio," which is the amount you owe in relation to the amount of credit available to you. If that percentage is more than 50%, your score will be lower.

Open a credit card account. While many Americans are turning to prepaid credit cards or debit cards to help them better manage their finances, this can work against your credit score. Without any credit history, you could be considered "unscoreable" and may have difficulty in obtaining credit.

Don't open too many credit lines in a short period of time. Each time you apply for a loan or credit card, the lender will make an inquiry into your credit score, which typically knocks points off of your score. Hold on to older, unused accounts. The longer an account has been open and managed successfully, the higher your score will be. Don't default on your payments. If you default on a loan -- such as when you file for bankruptcy or a bank forecloses on your home -- it can knock up to 100 points or more off of your credit score. Maintain a diversified credit mix. If you hold an auto loan, a home mortgage, and credit cards that are well managed, you will generally have a higher credit score than someone whose credit consists mainly of finance companies.

Beware of credit repair companies. The Consumer Federation of America warns consumers away from these companies, saying that they overpromise, charge high prices, and perform services, such as correcting credit report inaccuracies, that consumers could do themselves by simply contacting the lender and the credit bureaus.
The information in this communication is not intended to be legal advice and should not be treated as such. Each individual's situation is different. You should contact your legal professional to discuss your personal situation. 2014 Wealth Management Systems Inc. All rights reserved. Reproduction in whole or in part is prohibited without express permission of Wealth Management Systems Inc.

Easy OREO Truffles for Valentines Day!


Ingredients: 1 (16 oz) package OREO Cookies (divided), 1 (8 oz) package Philadelphia Cream Cheese (softened), 2 (8 oz) packages Bakers Semi-Sweet Baking Chocolate (melted). Directions: 1. Crush 9 of the cookies to fine crumbs in food processor; reserve for later use. (Cookies can also be finely crushed in a re-sealable plastic bag using a rolling pin.) Crush remaining 36 cookies to fine crumbs; place in medium bowl. Add cream cheese; mix until well blended. Roll cookie mixture into 42 balls, about 1-inch in diameter. 2. Dip balls in chocolate; place on wax paper-covered baking sheet. Sprinkle with reserved cookie crumbs. 3. Refrigerate until firm, about 1 hour. Store leftover truffles, covered, in refrigerator.
Source: allrecipes.com

Thinking of Starting a New Business in Retirement? Some Tips Before You Do


As a result of lengthening life expectancies and dwindling pensions, a growing number of retirees are looking to retirement as an opportunity to start a new business. Common Characteristics Older entrepreneurs differ from their younger brethren in several critical ways. For one, seniors are usually in a much better financial position than younger entrepreneurs. Their bigger financial cushion -- retirement packages, nest eggs, or home ownership -- affords them flexibility in the initial stages of a start-up, where funding is often critical. Because they can often rely on other sources for current income, they are in a better position to take greater entrepreneurial risks. Start-up funding may also be easier to come by for seniors, who can draw from personal savings and a lifetime of business and professional contacts. Senior start-ups may also be looked on more favorably by lenders, who often associate older entrepreneurs with a lower risk of default. Creativity and business acumen are also key characteristics of elder entrepreneurs. Having been tested again and again in their lives, they're not afraid of failure or worried about what others will think. Instead of that urgency to "make it,'' they get their satisfaction from the process of building their companies. While most senior start-ups are related to an individual's former career, some break into completely new territory. This is often the case with "serial" entrepreneurs -- those who have started up many different businesses over their lives and are experts at the start-up process itself. Whatever business you might consider, make sure you first do your homework. Talk to owners of similar businesses and scope out the market for such products or services in your area. Then, take the time to draft a formal business plan. Look Before You Leap As attractive as starting a new business in retirement may sound, there are several considerations you should bear in mind before taking the leap. Start-ups can be physically and emotionally draining for a retiree. Seniors tend to work fewer hours and take more vacations than their younger counterparts. Ask yourself: Are you willing or able to work the long hours that may be required in a fledgling business? There is also the matter of elder health concerns. For seniors, health problems can come at any time. Even if you are in top shape, you should factor in contingencies for unexpected health issues for yourself and your spouse. Then there's financial vulnerability. Seniors also rely much more on personal investments to supply a portion of their income. For these reasons, seniors are advised not to sink too great a portion of their investment portfolio into a new business and should avoid pledging as loan collateral personal assets such as a home. Successful post-retirement start-up tips:

How to Protect Your Parents


Senior citizens are routinely targeted by disreputable telemarketers, investment brokers, and charitable agencies, among others. One study estimated the financial losses by victims of elder abuse at $2.9 billion annually. 1 Another estimated the average senior victim of financial abuse loses $140,500.2 So what can you do to help your parents or other elderly loved ones avoid becoming the victim of a scam or losing control of their finances? Below are some tips.

Kellys Current Reading: The Goldfinch By: Donna Tartt

Look for clues. Are your parents having a hard time managing their finances? Have they stopped paying their bills? Are they overextending themselves with purchases or charitable contributions? Talk to your parents about their situation. Let them know that you are willing to help them maintain a certain level of independence, but that they may need assistance. Get a second opinion. Consider speaking to their primary care physician, or bring in a geriatric care manager, who can help you assess the mental clarity of your loved ones. You can find a local care manager at www.caremanager.org or at www.eldercare.gov. Assess their finances. Go through your parents' tax records, bank and investment statements, and credit card accounts. Be sure you have their account numbers and online passwords and keep a record. If they have a financial advisor, set up a meeting. Check over their investments. Are they suitable for them or do they need rebalancing? Bring in additional family members, if necessary, and set up a plan. Consider getting a durable power of attorney, which would allow you (or someone else) to make financial decisions for them if they can no longer do so. Check to see that your parents have a will and that it has been updated to meet all of their wishes. Also determine if they have a health care proxy or life insurance policies. If you do take over your parents' finances, be aware of the following:

Build on already established contacts and expertise. Seniors have a distinct advantage over younger entrepreneurs in their experience and long-established business network, which can give them a competitive advantage in virtually any business.

Start small. When starting up a new business in retirement, many begin with a small consultancy and gradually work their way into a full-blown business. This will give you time to assess whether you're willing or able to take on another fulltime career.

If you co-sign for a loan or credit card, you become responsible for paying it off if your parents cannot or if they die. Instead, ask your parents to grant you third-party access to their accounts. You could even arrange to have an alert sent to you if their charges go above a certain amount. Instead of opening a joint bank account, consider having a joint signature on the account instead. This way you'll be able to sign checks to pay their bills, but the account remains in their names. You can also request to have alerts sent to you if there are any lapses in payments.
The information in this communication is not intended to be legal advice and should not be treated as such. Each individual's situation is different. You should contact your legal professional to discuss your personal situation. 2014 Wealth Management Systems Inc. All rights reserved. Reproduction in whole or in part is prohibited without express permission of Wealth Management Systems Inc. 1Source: MetLife, "The MetLife Study of Elder Financial Abuse," June 2011. 2Source: Certified Financial Planner Board of Standards, "2012 Senior Americans Financial Exploitation Study," August 2012.

Don't bet the farm. If you're retired, you probably rely on personal investments for a portion of your income. Consider your income needs before investing a portion of your nest egg in a new business and think twice before taking on any personal debt.
2014 Wealth Management Systems Inc. All rights reserved. Reproduction in whole or in part is prohibited without the express permission of Wealth Management Systems Inc.

Your Government at Work


The Department of Housing and Urban Development once spent $505,000 in tax dollars for specialty hair and beauty products for cats and dogs.
Kelly C. Ruggles , Spokane, WA., does not intend to provide personalized investment advice through this publication and does not represent the strategies or services discussed are suitable for any investor. Investors should consult with their financial advisors prior to making any investment decision.2014 Kelly Ruggles News Letter.

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