Preparedness means rebuilding toward a brighter future with emergency savings by The CFPB

September is National Preparedness Month, which is aimed at promoting family and community disaster planning, including financial preparedness. This year, for many Americans who experienced financial challenges as a result of the coronavirus pandemic, preparedness means taking small steps toward rebuilding and resilience.

If you are ready to think about your bigger financial picture for the first time in months, what’s the first step?

Consider – or start – your emergency saving fund. As you build it over time, it will help cover unexpected expenses that may come, whether that be a natural disaster, unexpected illness, car trouble, or other financial downfall. It can become an important means for avoiding unwanted debt and help you more quickly realize your dreams. In short, it can become a strong foundation for your financial future.

This recent Start Small, Save Up research brief draws on the Bureau’s Making Ends Meet survey  to look at what savings habits can mean for consumers. It looks at the connection between saving and a sense of financial preparedness, well-being, and control and peoples’ experiences related to difficulty paying their bills.

The Bureau has created resources to help you rebuild, recover, and protect your finances. One way to get started is with our emergency savings guide and emergency savings email boot camp. For more tips and tools to help you build emergency savings, see our Start Small, Save Up web page. And learn more about protecting your finances during disasters at our Preparing, recovering and rebuilding after disasters and emergencies web page.

It might seem impossible to save enough to get you and your family through something like a furlough, job loss, or reduced hours. But any amount can make a difference and it’s never too late to start. The more you can save, the better you can weather the worst, and the faster you can recover when it is over.

SOURCE: CFPB

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

Claim Your CARES Act Payments

The Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act, is a $2.2 trillion economic stimulus bill that was passed on March 27, 2020. Millions of Americans are eligible to receive these funds, yet there are many who have not claimed it yet. Individuals have until October 15, 2020 to claim their stimulus payments. 

If you were not required to filed a 2019 tax return, the quickest way to claim your EIP (Economic Impact Payment) is to enter your information on the IRS’s Non-Filers Tool on or before October 15, 2020. By Claiming your EIP means you’ll get money sooner, this is important because those who are not typically required to file tax returns is because their income is below the filing threshold. 

Get My Payment is a free tool on IRS.gov to help you learn the status of your EIP by entering basic information. This tool will help you analyze if you need to take additional action to get your EIP or simply if you are ineligible. This tool will not do any harm- on the contrary it will help you understand more where you stand. 

If Get My Payment says “Payment Status Not Available” The IRS does not the information it needs to calculate eligibility. Continue to the Non-Filer Tool or file your 2019 Tax Return. Keep in mind the Non-Filer Tool or Filing your 2019 tax return takes up to two weeks to reflect on Get My Payment.  You can find the Non-Filers Tool here- Your information can be provided on a computer, smartphone or other mobile device and is available in both English and Spanish. 

If your status on Get My Payment says “Need More Information” means there is a problem with your direct deposit or mail and it was returned to the IRS as undeliverable. You must correct this information or update your mailing address and bank information. If you run into issues you can call the IRS EIP Assistance line at 800-919-9835. 

If your status says “ A Payment Has Been Processed” check your mail or financial institution before contacting the IRS to make sure you received your payment. The Payment if received could be either a check or a debit card. If you have accidentally discarded your EIP card please call 800-240-8100 to get a replacement sent to you. 

Status “Pending and Not Processed” means you are eligible and the payment has not been sent to you yet. If it has been over two -weeks theri could be a problem. For assistance on this please call 800-919-9835. 

For more information on the CARES Act and how you could claim it visit the CFPB 

Source: CFPB 

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NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).

Thrift Savings Plan (TSP) and How You Can Benefit

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve.

The Federal Employees Retirement System Act of 1986 was established by congress to help provide retirement income for federal employees similar to a 401(k) plan. 

The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service,

if you’re eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time.  

Similar to 401(k), TSP funding can be taken straight out of your paycheck and can be invested in a variety of funds. The five different fund options are: The Government Securities

Investment Fund, The Fixed Income Index Investment Fung, The Common Stock Index Investment Fund, The Small Capitalization Stock Index Fund and the International Stock Index

Investment Fund. Check out more information about these funds and their benefits here.

With the TSP, you have two options where you can choose to invest in any of the five above mentioned, individual investment funds or you can invest in a lifecycle fund. 

Life cycle funds, or L Fund, is a mix of the five core funds (G,F,C,S and I). They allow you to let you invest your money in an entire portfolio and get the best return for the amount

appropriate for you. (Source)

On the contrary Individual Funds give you full freedom on how you want to balance the five fund types. And give you control over your investment. You can choose how you balance each of

the five fund types or skip the ones you don't want. 

One of the many great benefits of the Thrift Savings Plan is matching your contributions from your agency if you are part of the Federal Employees Retirement System (FERS) or Blended

Retirement System (BRS). Your agency or service starts contributing 1% of your pay- you receive that 1% even without making a contribution of  your own. 

It is important you contribute the highest amount possible to be able to maintain your standard of living in retirement. Most TSPS participants are around 80% contributing to a TSP account are

putting in at least 5% of their pat to get a full match. (Source)

Every month that goes by that you don't take full advantage of the TSP is a month of lost savings and earnings. Don't pass up on free money. - Learn more at https://www.tsp.gov/

Did you enjoy this blog? Please review us to help us improve and spread the word. We appreciate your feedback – CLICK HERE ⭐⭐⭐⭐⭐

 

NOTICE: This communication and its content are for educational and informative purposes only and should not be used as the basis for any investment decision. The information contained herein is based on publicly available sources believed to be reliable but not a representation, expressed or implied, as to its accuracy, completeness or correctness and it is not a replacement for the guidance or professional advice of an accountant, certified financial advisor, or otherwise qualified professional. No information available through this communication is intended or should be construed as any advice, recommendation, or endorsement from us as to any legal, tax, investment, or other matters. Nothing in this communication shall be considered a solicitation or offer to buy or sell any security, future, option, or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this communication constitutes investment advice or offers any opinion with respect to the suitability of any security. This information has no regard to the specific investment objectives, financial situation, and particular needs of any specific recipient.  We recommend that you never provide a third party with names, account numbers, or other sensitive information unless you are certain that it has a legitimate business purpose.

Links to third-party websites are provided for your convenience only and you access them solely at your own risk.  We do not endorse or assume any responsibility for any such third-party sites, information, materials, products, or services.  Your access and use of the third-party sites are governed by the terms of use and privacy policies of these third-party sites.  You acknowledge and agree that we shall not be liable or responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or related to the use of or reliance on any content, goods, or services available through any third-party website or resource. 

* ACCESS LOANS™ products are funded and serviced by Safra National Bank of New York (“SNBNY”).