Tax Deduction or Tax Credit: Which Is Better?
Something’s Phishy 4 COMMON FINANCIAL SCAMS TO AVOID
checkout, instead of being directed to a trusted third-party payment process, these merchants may ask for wire transfers or gift cards. Some of these online stores might not even provide contact information! FAKE DEBT COLLECTORS Criminals will claim to be government representatives and urge you to settle a debt putting you at risk of being arrested, losing your home, or forfeiting your Social Security benefits. These scammers will ask you to pay the fake balance upfront to avoid any serious repercussions. Remember, government entities do not cold call, so you know to hang up or hit “delete.” WORK-FROM-HOME SCAMS As working from home has recently become the norm for many, this hoax has become even easier for criminals to pull off. Cybercriminals will contact you, stating you can make hundreds of dollars a week doing nothing more than shopping online as a mystery shopper or another enticing task. They will then tell you that to get started, you’ll need to pay upfront for training materials — but once you do, you’ll never hear from them again. As a general rule of thumb, stay clear of any offers that seem too good to be true. Likewise, avoid transactions that don’t use a trusted third-party merchant, and always do your research! If something seems off, trust your instincts! In today’s world, you never know what hoaxes exist!
From dating swindles to Bitcoin and cryptocurrency hoaxes, it’s hard to tell the difference between honest offers and scams. Even worse, scams are becoming more creative every day. Here’s a list of some of the most common financial scams to be aware of. CRYPTOCURRENCY SCAMS Bitcoin and other cryptocurrencies have taken the world by storm. Because many don’t understand how they operate, it’s easy for cybercriminals to pull a fast one — or attempt to, anyway. To trick unsuspecting victims, scammers set up fake websites that mimic legitimate cryptocurrency platforms. These sites then either urge you to make investments or they will steal your information outright. FRAUDULENT RETAILERS On social media websites, you may have noticed suspicious online stores featuring deals that are too good to be true. At
WHAT THE RECENT FED HIKE MEANS FOR YOU A MATTER OF INTEREST
In June 2022, the Federal Reserve (Fed) increased interest rates by .75%. It’s the largest hike since 1994 and the third increase this year. Many experts predict that further interest rate hikes are in store this year, and it has a lot of ordinary people wondering what the Fed’s action means for them. When the Fed raises interest rates, they’re adjusting the federal funds rate, or the rate banks charge each other to borrow money for short periods. When that rate changes, it tends to trickle down to consumer rates on savings and loans. The Fed is responding to inflation and hoping the increase will cause lower spending and decreased inflation. Whether the Fed will achieve the results they’re hoping for remains to be seen. What this means for your daily life will depend largely on your financial situation and goals. A higher federal funds rate typically means higher rates on savings accounts. That’s good news for your emergency fund. But since most people invest the bulk of their wealth in other financial instruments, and savings interest rates are still very low, few people will see a notable impact.
You are more likely to notice higher interest rates when taking out a mortgage or other loan. Average mortgage rates are roughly 2% higher than they were a year ago and might continue rising. Over the 15 or 30 years of a mortgage, that can add up to tens of thousands of dollars. Similarly, financing a car purchase or taking out a home equity line of credit or other consumer loans will likely become more expensive. Any borrowing that uses a variable interest rate will also be affected. While adjustable-rate mortgages have generally fallen out of favor, your current credit card balance or student loan is more likely to see an impact. It’s best practice not to buy items on credit cards unless you can afford to pay them off immediately. But now is the best time to pick up the habit if you haven’t already. While we can make some educated guesses, nothing about the economy is set in stone. How much rates will rise and whether they will cool spending and inflation is still unknown. In the meantime, we’ll help you make the best decisions for your family and future.
P2 | PATRIOTWEALTHNC.COM
Made with FlippingBook Ebook Creator