Happy New Year!

 

I hope you all enjoyed the holiday season. At Skowhegan Savings, we are greeting 2011 with a renewed sense of optimism and a look toward the future.

Our plans for the upcoming year place a focus on education, planning and financial success for our customers, their families and our local businesses. We'll also be incorporating new technologies into our banking practices, while continuing to providing a high level of personal customer service you can depend on whether it is face-to-face, over the phone, or over the Internet.

 

Some of the things we resolve to accomplish in the coming months include:

1)      A renewed effort to promote financial literacy in our communities for people of all ages

2)      Continued support of our community organizations and institutions that create opportunity and support for those in need

3)      A new look for our website and more interaction through social media

4)      Bank products and rates that are competitive and geared toward the needs of the people in our communities

5)      Workshops that allow businesses and individuals to plan for their financial future, whether it's for new markets, new homes, college or retirement

 

If there's something you'd like to see us focus on in our communities anywhere from Jackman to Belgrade, please let me know.

 

Best wishes for a great 2011!

 

Sincerely,

John C. Witherspoon

President & CEO

 

"SMiShing" Scams Target Cell Phone Users

 

"Smishing" can target anyone using a cell phone, but what is it and what can you do to protect yourself from this fraudulent activity?

 

Don't get caught by a Smishing scam!

Smishing is a new type of phishing scam where a criminal attempts to get a victim to turn over personal information so he/she can use the data for financial gain. The "sm" refers to SMS text messaging, or the mode of transmission for text messages. The scam artist contacts you on your cell phone, either via text message or an automated call and has a number of strategies to try and gain access to your personal information. For example, the scammer may send you a text with a "confirmation" link for an online dating website. The message states it will bill you if you do not visit the website and cancel your order immediately. Once you go to the website, you are required to fill out your personal information and terminate your order.  Once you've done so - the scammer has all they need to exploit your financial and personal accounts.  

Commonly, smishing scams claim to be from your banking institution. The message states that there is a problem with your bank account. You are provided with a number to call and/or a website to log into. If you follow the website, or call the number, the scammer acquires sensitive information, such as passwords, pin numbers or account numbers used in accessing your financial accounts. These con artists try to establish trust by using the name of your banking institution, or another familiar business, and using phone numbers in your area. It won't necessarily be a 1-800 number, using an automated system makes it possible for the call to appear as one from within your area.

Tips to Avoid Smishing:

• Skowhegan Savings will never contact you to ask for your password, account number, or other account-accessing details.

• Treat your cell phone with the same care you would your computer in terms of protecting your privacy.

• If you need to reach an organization you do business with, call the number on your financial statements or on the back of your card.

• If you suspect a message or call is part of a smishing scam, contact the institution to alert them to the scam. Always be suspicious of numbers you do not recognize or blocked numbers.
   

Signs to Help You Recognize if You're Being Smished:
 
One of the easiest signals that a message is smishing is if you are asked to "verify your account." Legitimate businesses will not ask you to send passwords, login names, Social Security numbers, or other personal information through text messages. Additional signs are if you are sent a confirmation notice from a company you have not ordered anything from or you have received text messages with links from a number(s) you do not recognize regarding unfamiliar content (i.e. online dating).
 
What to Do if You Get Smished:

Do not respond to the text message or phone call. Contact the agency you suspect is being impersonated by a scammer by using contact information from a statement or bank card. Share the details of the incident with a customer service representative.   

Multi-Tasking in Your 30s, 40s or 50s: Money Management Tips for Life's Milestones

~Adapted from FDIC Consumer News~

 

Manage your money at every age.

The years between young adulthood and retirement are a critically important time for managing your money. There's a lot to think about and many milestones to be made, both financial and otherwise.

Key issues you may face include: buying or refinancing a home, paying for your child's education, boosting your income during your remaining work years, retirement and optimizing a financial "windfall." Here are some suggestions for minimizing your financial stress and maximizing the results:

 

Think ahead when it comes to having a home and a mortgage. If you don't own a house, consider if it makes sense to buy one, especially if you're not planning to move in two or three years. Homeownership can offer tax advantages and a stable place to live, but don't take on more of a mortgage than you can afford to pay each month.

 

If you already have a mortgage, periodically compare your interest rate to current market rates. If rates have declined, calculate whether refinancing makes sense. Don't forget to include closing costs and the amount of time left on the loan.

 

For example, if you have 15 years left on your 30-year mortgage and you want to refinance, in the long run, you're usually better off with a 15-year loan instead of committing to another 30-year loan because of the additional interest payments.

 

Mortgage rates are very low right now and Skowhegan Savings offers a bi-weekly mortgage that can reduce the overall interest you pay on your home purchase. To learn more about this program or special promotions for first-time homebuyers, email one of our consumer loan experts.

 

Pursue tax-preferred ways to save money for a child. The cost and benefit of a college education can be high. Most agree that the earning potential of a college graduate is much higher than someone with only a high-school diploma. State-sponsored "529-plan" savings accounts and Coverdell educational savings (formerly Educational IRA) accounts carry tax advantages while helping individuals and families save for higher education expenses.

 

Additionally, many families may be able to qualify for a tax break on earnings from certain U.S. Savings Bonds used for educational purposes. Research the various loan programs that are available, in addition to financial aid packages and grants for schools. There are many differences and be sure to fully understand the fees, the interest rate, and when loan payments and interest charges will begin.

 

Also be on guard against scams that begin with a "guarantee" or promise of scholarships, grants or fantastic financial aid packages. For details, see a Federal Trade Commission warning about fraudulent scholarship offers at: www.ftc.gov/bcp/menus/consumer/education/scholarships.shtm.

 

Maximize your retirement savings. Many of us dream of travel, enjoying our hobbies at a more leisurely pace when we retire. It's important to plan ahead so you can reach these goals. Tax-advantaged savings vehicles, such as Individual Retirement Accounts (IRAs) and 401(k)s, are sound choices. At age 50, you can also make "catch-up" (additional) contributions to these retirement savings accounts.

 

Speaking with a financial planner or another personal advisor may also be beneficial. They can recommend investment strategies that would best fit your age and stage of life - especially the mix of stocks, bonds, mutual funds and lower-risk alternatives such as U.S. Savings Bonds and bank deposits. You can make arrangements to meet with a certified financial planner at any branch office of Skowhegan Savings through Skowhegan Financial Services.  
 

Optimize any financial "windfall." Many people receive a large sum of money from an inheritance, a home sale or an insurance payment, and they aren't sure how to use or protect it. Consider asking a financial or tax advisor about the best options, which may include starting or adding to a rainy-day fund for emergency expenses or putting money into your retirement accounts. You may also consider paying off high-interest debt, such as the outstanding balances on credit cards.

 

For more help or information for people at midlife: Find basic tips on a variety of money management topics online at www.mymoney.gov, a U.S. government website.