Is an Electric Vehicle Right for You?

The pros and cons of owning an EV
If you’re considering167427226 a new ride, you owe it to yourself to check out an electric vehicle (EV). Here are some of the pros and cons of owning one.

Electric vehicles have come a long way in a short amount of time and can eliminate the need for gas. With significantly fewer parts than traditional gas-powered engines, EVs require significantly less maintenance too. EVs have zero tailpipe emissions, so they enable you to do your part in helping the environment.

Many people believe that EVs don’t offer the range that they need in terms of miles they can drive on a single charge, but that’s simply not the case. According to the United States Department of Transportation Federal Highway Administration, the average American commutes fewer than 40 miles per day. Most EVs get far more than that.

Here are a few examples.

Nissan Leaf
The Leaf starts at an MSRP of $29,010 and offers 107 miles of range when equipped with the 30-kWh battery. Standard features include Nissan Intelligent Key with push-button start, Bluetooth wireless connectivity and heated front seats. You can also add the NissanConnect system with Navigation, a Bose audio system and leather upholstery. If you download the LEAF EZ-Charge app, you can locate over 20,000 charging stations nationwide so you’ll never be worried about running out of power.

“While it has a limited driving range, in most other respects the Leaf is quite similar to a conventional gas-powered compact hatchback, offering a comfortable interior and surprisingly snappy acceleration (albeit with zero emissions),” says LeftLane News.

Tesla Model S
The Model S has revolutionized the way people look at EVs. It’s not as much of a great luxury EV as it is a great luxury vehicle that happens to be electric, which was designed to be safer and more exhilarating than anything else on the road. It also offers electric all-wheel drive, autonomous driving features and technology that make it the envy of its peers. Driving range starts at up to 218 miles per charge in base form and can go all the way up to 315 miles. This is impressive in its own right, but even more so when you consider the Model S can go from zero to 60 mph in as little as 2.5 seconds.

Kelley Blue Book says that the “Tesla’s Model S for 2016 is a game changer, offering everything a traditional combustion-engine luxury sedan does without the harmful emissions and unpredictable fuel bills. . [T]he Model S can win over the most skeptical enthusiast.”

Mitsubishi i-MiEV
An MSRP of $22,995 gets you into a new 2017 i-MiEV, and after the federal tax credit of $7,500, the i-MiEV comes in at an impressively affordable $15,495. That’s significantly cheaper than popular models like the Toyota Corolla, Honda Civic, Chevrolet Cruze and Ford Focus. Its 60-mile driving range may not be as impressive as that of the other models mentioned, but it allows for fuel-free driving for less than many traditional gas-powered vehicles cost, making the i-MiEV a great second vehicle for people who don’t tend to travel very far.

Other options: You can find electric versions of popular models, including the Kia Soul, Volkswagen Golf, Chevrolet Spark and Ford Focus.

The Drawbacks
While there are many advantages of owning an EV, there are still some factors some people can’t overcome. The architecture of the grid is improving, but if you’re looking to travel long distances, many EVs aren’t ideal because of their long charging times and limited ranges. Another factor can be price, which puts a lot of buyers out in the first place. And if you’re looking for variety, many manufacturers don’t even offer an EV in the first place.

Regardless of what you’re looking for, your financial institution is arguably the best place to get financing, so stop by and let us know what you’re looking for, and we’ll do our best to get you the money you need so you have one less thing to worry about.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

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The Dangers of Taking a Personal Loan to Finance Your Wedding

Consider the long-term costs of taking a loan to pay for one day of happiness

The cost of weddings has risen in recent years, leading to couples taking out loans or paying for items with credit cards. Yet starting your married life in debt could be a dangerous financial decision for more reasons than one.

Weighing the Costs
According to a survey conducted by renowned wedding resource site TheKnot.com, the average cost of a wedding in 2015 was $32,641. While some will gladly pay this amount for the wedding of their dreams, most Americans do not have enough money saved up to do so without resorting to borrowing.

In an article on TheKnot.com, contributor Rachel Torgerson advises against taking out a personal loan to finance your wedding, agreeing with financial planners on the dangers of taking on such large debt for one day of your life.

“The problem with personal loans is that most often people are taking them out because they’re trying to spend cash they don’t have. I would also lump in credit card spending here, because I think a lot of people pay for wedding-related things with a credit card and they may or may not have the cash to pay it off in full,” says CFP Laura Lyons Cole, personal finance contributor for financial planning website MainStreet.com.

If you’re considering taking out a large-sum loan, it means you probably don’t have the money to afford such a high-cost wedding in the first place. In general, money and financial stress are top issues that couples will argue over. In fact, studies have shown a high correlation between high-cost weddings and divorce rates.

Additionally, Josephon advises to consider how your ability to put money toward other savings, like a retirement savings account or your future children’s college savings, may be hampered when you start your marriage off with serious debt.

Paying Long Term for a Short-Term Event
With a consumer installment loan, you will be required to make payments for both principal and interest through the wedding loan term, Karimi explains. This means you will end up spending more for your wedding day than the actual cost of the event.

Karimi notes that a $32,000 loan at a 7.5 percent APR would take 48 months to pay off, with minimum payments at a bit under $775 per month-and that’s for buyers with excellent credit.

Even if you can afford such high monthly payments, think of the time it would realistically take to pay off this single-day event. Additionally, you would be carrying debt during a time of major change in your life; you may want to buy a home or a new car, or start a family, and such debt could prevent you from being able to open other lines of credit to pay for these expenses.

Don’t forget that creditors and lenders will look at your current financial standings, including other loans and lines of credit you have out. With a majority of young adults saddled with high student loan debt, their loan amount and interest rate offered will be affected by their total debt.

While you can get a loan with a lower credit score, you will ultimately pay more for it because of higher interest rates. Most financial advisors warn against taking such a loan, known as a bad credit personal loan.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Best Ways to Save for Your Mortgage Down Payment

Four simple methods to get the ball rolling on your down payment savings
Buying a home is ajanuaryfeatured_saveforhome huge step in life and begins with a huge hurdle: the down payment. Fortunately, by starting early and thinking things through, you can get a solid jump on saving. Here are some easy ideas to get you started.

Automate Your Savings
At your usual financial institution, open a savings account specifically designated for your down payment/mortgage. Not only will this allow you to conveniently transfer funds from one account to the other, it will also allow you to automate transfers or directly deposit part of your paycheck into the specified account.

Make a Budget
Create a spreadsheet that lists all of your monthly expenses and monthly net income. Not only will this tell you how much you can put into savings, it can also help you discern what monthly mortgage payment you can afford. If the buffer between expenses and income is already too small, this is an early red flag that you will have to start doing some things differently to afford your mortgage.

“Given that income and expenses are closely matched in many households, the only way to get ahead is to bring in more money or change your spending habits (meaning spend less) and avidly look for new savings sources,” says Peter Miller, The Simple Dollar contributor.

Invest Your Funds
If you are looking to buy a house within the year, Kathryn Vassel of CNN Money recommends keeping your money liquid; but if your plans are more long-term, it is a good opportunity to invest in order to boost savings. If you are looking at a 10-year time frame, stocks could be a good option for you, Vassel writes. If you think you’ll buy a house in five to seven years, consider investing in bonds: 50 percent in longer-term bond funds or individual bonds and 40 percent in short-term bonds that mature in one to three years, plus 10 percent in cash. Finally, try higher-interest CDs if you are still two to four years from buying a home.

Research Home-Buying Programs
One of the first steps toward saving for a mortgage is setting a goal. A general rule of thumb for the down payment is 20 percent of the home’s selling price, but many available government programs also offer lower down payments, down payment loans or grants, or housing discounts. For lower down payments, look into GSE loans or loans through the FHA, VA or USDA.

Whether you choose one of these savings methods or all of them, they will help you come up with the down payment for the home you’ve always wanted.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

Avoid These Online Scams

Keep your bank account safe online
Once you begin experiencingjanuaryfeatured_onlinescams the time savings and convenience of banking online, it may become hard to remember how you ever lived without it. The online tools provided by your financial institution can make many of your financial tasks a breeze, while built-in security measures keep your information and your money safe.

Occasionally, however, scammers attempt to trick people by masquerading as a legitimate business or financial institution. Below is some information you can use to help keep you safe from scams.

One of the best ways to avoid being scammed is to use a safe method of payment, such as the credit card from your financial institution.

“Credit cards have significant fraud protection built in, but some payment methods don’t,” the Federal Trade Commission states.

When you use your credit card, your transactions are supported by a suite of security services that attempt to identify, prevent and alert you to suspicious activity. That added layer of security can protect you from fraud and give you peace of mind when you shop and bank online.

“Wiring money through services like Western Union or MoneyGram is risky because it’s nearly impossible to get your money back,” states the FTC. “That’s also true for re-loadable cards like MoneyPak, Reloadit or Vanilla.”

In other words, skip the re-loadable cards unless they come directly from your financial institution and be sure to use your credit card to benefit from the fraud protection services when making purchases. This is an especially good idea when shopping online, as illegitimate websites can masquerade as well-known stores to encourage you to enter your payment information, and scammers can attempt to intercept your payment information on unsecured networks.

“Resist the temptation to use free public Wi-Fi,” cautions USA Today contributor Elizabeth Weise. “It is a trivial matter for hackers to eavesdrop on your connection and steal your information.”

Another important way to protect yourself is to keep track of current scams and remain watchful for new ones, which you can do by signing up to receive scam alerts directly from the FTC at https://www.ftc.gov/scams.

On Oct. 27, 2016, the FTC announced that in the nine previous months, more than 111,000 people had reported receiving fraudulent calls from IRS imposters. The scam these callers were attempting to pull off typically involved stating that money was owed to the IRS and needed to be paid immediately to avoid dire consequences, but there were several variations on the theme. In order to help people identify these imposters, the FTC prepared an educational video, which you can find at https://www.consumer.ftc.gov/blog/ftc-fights-international-scams.

Another common scam that the FTC warns about involves fake checks and money orders, which are often printed using the highest-quality materials and state-of-the-art printers that are capable of reproducing authentic-looking watermarks. They may even be printed with the name of a real financial institution and include legitimate account and routing numbers.

These fake checks can be used in a variety of scams, one of the most popular of which is known as “check overpayment.” This is when someone tries to sell an item online, such as through Craigslist, and receives a check for more than the sale price. The buyer then asks for the excess money to be wired, after which the check bounces and the seller loses the wired funds. To avoid this scam, never accept payment for more than an item’s sale price and never wire money to a stranger.

“If you accept payment by check, ask for a check drawn on a local bank or a bank with a local branch,” the FTC states. “That way, you can make a personal visit to make sure the check is valid.”

Lastly, never respond to an email with your personal identifying information or financial information, and always check with your financial institution if you suspect you have received illegitimate communication via email or phone.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.

The Power of Compound Interest

Why it really pays to invest early in a retirement account
Money in a savingsjanuaryfeatured_compoundinterest or retirement account grows over time as it earns interest. But the interest rate isn’t the only factor that determines how much it grows; compounding interest helps your funds grow faster because it lets you earn interest on the money you deposit plus previously earned interest.

Compounding interest gives young investors great power to save for retirement, even if they don’t currently have much to save.

People in their 20s and 30s who are working to build their careers are often tempted to put off investing in retirement for a time when they are more established financially. By doing so, however, they miss out on the big advantage they have over older, wealthier savers: time.

“If you invested $10,000 in a mutual fund and the fund earned a 7% return for the year, you’d gain $700,” according to NerdWallet. “Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 7% return, for example, your $10,000 would grow to more than $76,000.”

To test out the power of compound interest for yourself, try the Compound Interest Calculator from NerdWallet. It can show you exactly how far your money could go if you started saving today. Just plug in hypothetical savings amounts at https://www.nerdwallet.com/banking/calculator/compound-interest-calculator.

The earlier you start investing, the more time your money has to compound, and when you do the calculations, it becomes clear that saving a little bit of each paycheck today can add up to a much bigger sum at age 65 than if you wait a few decades to start saving, even if you can afford to save more each month when you’re older. The bottom line is that to truly take advantage of the power of compound interest, you need to start saving as early as possible, and the advantage you gain by doing so cannot be overstated.

Business Insider calculated how much you would need to save each month to reach $1 million by age 65 at a 6 percent return rate, and the results are astounding. If you start saving at age 20, you only need to invest $361.04 each month, while starting at age 30makes the required monthly savings nearly double to $698.41. If you wait until you are 50, you need to put away $3,421.46 each month to end up with the same amount at age 65.

You can see a chart that illustrates the calculated monthly savings required for each age group at http://www.businessinsider.com/compound-interest-monthly-investment-2014-3/#.U6xcEI1dWVh.

“When you start saving outweighs how much you save,” says Business Insider contributor Libby Kane. “Retirement accounts such as 401(k)s and Roth IRAs aren’t just savings accounts-they’re actively invested, and therefore have the potential to make the most of this benefit.”

If you’ve been inspired by the mathematical magic of compound interest, harness that motivation by talking to your financial institution about opening up a retirement account or by committing to making regular contributions to your existing savings and retirement accounts.

Used with Permission. Published by IMN Bank Adviser Includes copyrighted material of IMakeNews, Inc. and its suppliers.