It Isn’t Uncommon to See People Cheat Their Own Retirement Plan to Provide For Their Kid’s College Fund.

Focusing on children’s college tuition needs and neglecting their own retirement is something many parents do. As parents, we are providing private school, automobiles, and basically supporting kids today. That shouldn’t mean you don’t plan to have a pleasant retirement. Howver, that freshman year budget can be on the doorstep a lot quicker than you expect, and it will not be denied! How in the world do people manage both of these obligations?

An important step to take first is assess your actual financial ability for each of these goals. Like most things in life, the sooner you begin, the easier this will be. By considering these two important objectives collectively, you may be able to adjust more effectively as time and financial restrictions present themselves. Consider these points as you begin:

How To Pay for College

How long do you have before your children begin college?
Compare both a public and a private college, and the asssociated costs.
Do you expect to provide all or just part of the cost of a college degree?
Research all possible options for any academic, athletic, or artistic scholarship opportunities.
Explore every possible chance for financial aid in the form of grants.
Consider employers who will fund all or part of a student’s college career in order to procure a quality employee.
Consider military career options that provide college education financial support
Discuss with your child options such as staged educational plans. Attending tradeschool first, and working while atteneding college.

How to Pay for Retirement

When are you going to retire and how far away is that?
What activities do you have planned for your retirement? Travel? Relocation? Simplicity or Extravagance?
Go online at www.ssa.gov to see how much you can plan to get in Social Security benefits.
Don’t forget any pension plans your current employer may have.
Factor in any traditional or Roth IRA revenues.
Be sure to take advantage of any employer-sponsored retirement plan that is available.
Do you expect to work part-time during your retirement?

What to Do if The Numbers Don’t Add Up

If you’ve gone through the process and you’ve found that you cannot put enough funds aside to cover both retirement and college, you’ll need to consider the following concepts:

Possibly delaying retirement a few years.
Adopt a reduced standard of living now or later in retirement. It may be possible to reduce spending now in order to use it later, or you may need to modify retirement plans themselves.
Consider working in your retirement.
Possibly invest more aggressively now. Consult with an advisor to determine your comfort level with investment risk.
Extending the responsibility to the child to contribute money to college funding.
Consider a less expensive college to send your child to.

Retirement should be something you prioritize if limited funds and / or limited tolerance for investment risk are issues for you. You do not want to wait until a child is out of college before you begin a retirement plan. There will be many years of compounding and potentially tax-deferred growth you won’t get to take advantage of.

College Can be Made More Affordable, But Retirement Might Not Be So Easily Managed

College can be paid for with loans or with scholarships, but whoever heard of a retirement loan? Remember it doesn’t have to be just one solution. Consider saving up what you can afford to and supplement with student loans later on in the education process. Helping a child to pay off a student loan might be more affordable than trying to save up in a shorter term. Consider participating in your childs post graduate living expenses as a method of support..

Never forget to avail yourself of the assistance of professionals. Search out financial advisors who specialize in specific funding practices such as College Funding and Student Loan Advisors, and for retirement as well by finding a Chartered Retirement Planning Counselor or Certified Financial Planner.

While getting all of these strategies in place don’t forget to call us at the Liveoak Agency to discuss your current insurance policies. As you go through life, your risks and the costs of different polices can change. Let us analyze your current situation and make sure you have the best insurance porfolio for your needs! Any savings we can come up with can help in that retirement plan! And don’t forget those college kids need insurance too!

(334)-285-2881

Hire the Right Contractor for Your Home Renovation Job.

When you are planning a home renovation or improvement project, you should be aware that your contractor choice can be a critical part of the planning process. You definitely want to be sure of the quality of their work befrore they begin and have everyting you want done in writing and definitely agree on the scope and cost of the project. Another great idea is to be sure the contractor is properly licensed and insured just in case something goes wrong.

Follow these top tips when you select a contractor:

1. Obtain More Than One or Two Estimates

Have several contractors give you written estimates for your home renovation. Be sure different estimates are for the same quality of materials and similar work results. And not just building materials or work methods, but also timelines! If it is cheaper but takes 3 times as long, it may be better to go with the higher priced job. It may also be wise to negate the high and low estimates and go with the moderate ones.

2. If You Can, Hire Local People Who Are Licensed Contractors

Using someone local will make it far easier if problems develop in the future. Local contractors will very likely be more familiar with the building codes that affect your project. Be sure to get contractors local, physical address. Peopole who go door-to-door should be avoided.

3. Get Feedback From People They Have Worked For

Knowing what the quality of their past work for previous jobs has been can really help you make the correct person. Finding someone who specializes in the kind of work you need done can improve your chances of success. Inquire about their professional reputation and how many years in business with the organizations like the Better Business Bureau. Greater than five years of experience is suggested for best results.

4. Don’t Rush Your Decision

It can take some time to get multiple bids. You shouldn’t let someone pressure you into making an immediate decision, especially regarding contracts. Be very careful if you are asked to pay a deposit up front. Take the time to be sure and read the fine print on all estimates and contracts. In the case of emergency repairs you may not have enough time to thoroughly research multiple contractors. This is a good time to ask your neighbors, family or friends if they have had any experience with an emergency services contractor.

5. Be Sure They Are Insured & Bonded

A competent contractor will be properly insured and bonded. Ask contractors for a certificate of insurance (COI), which will provide the name of the insurance company, policy number and policy limits the contractor carries. You can even contact the insurance company directly if you want to verify their coverage and be sure the policy is still in effect. Never do business with a contractor who does not have the appropriate insurance coverage. Remember, If you hire a contractor that is not properly insured, you may be liable for accidents that occur on your own property!

6. Be Sure to Get Everything in Writing

Make sure you have a comprehensive contract in hand before any work begins. Everything should be in writing, and the contract shoudl be clear and well written. For larger, or more expensive projects, It may even be wise to have an attorney review the proposed contract before you sign. A solid contract should include:

• A detailed description of the work to be completed and the price of each portion.
• A payment schedule – If there is to be a deposit for example: one-half down and one-third when work is partially completed, and the balance due upon completion of repairs.
• The estimated start date and completion date on larger projects.
• Any and all guarantees should be written into the contract and clearly state what is guaranteed, who is responsible for the guarantee, and how long the guarantee is valid.
• Signatures from both parties. Never sign a contract containing blank sections.
• Any changes made to the contract should be acknowledged by all parties in writing. Be sure to confirm the contractor has obtained all applicable building permits. When cancelling a signed contract, follow the contract’s cancellation clause. Written notification of the cancellation should be sent by registered mail to ensure you have proof of the cancellation.

7. Know & Understand Your Right to Cancel

The law may require a “cooling off” period, during which you can cancel the contract without penalty. Check with the Federal Trade Commission and your state laws to know your rights. Always follow all applicable rules during the cooling off period. When canceling a contract, it is wise to send the notice of cancellation by registered mail to ensure you have proof of the cancellation.

8. Never Pay Up-Front

You should never pay for an entire project before it is completed. It is recommended that you make checks payable to a company, not an individual, and do not pay in cash. With larger projects, it is a standard practice to pay one-third of the estimated costs as an initial down payment. In these cases, your cashed check is a receipt, and proof of your payment.

9. Delays Happen

When delays happen, and they will, they may not be the fault of your contractor. In spite of the timeline outlined for the project, inevitably circumstances such as weather may cause the work do deviate from the schedule. Always be realistic and be prepared to adjust your plans accordingly.

10. Create a Home Renovation Job File

Keep your contract and all the supporting documents in one folder. A job file should also contain any change orders, plans and specifications, bills and invoices, canceled checks, and certificates of insurance and any letters, notes, or correspondence with the contractor. Having everything in one place makes it easier to access in the event discrepancies occur. Be sure to keep it safe in a fire proof safe or even a safety deposit box.

While preparing to follow all these tips, you should also remember that in some cases, major home renovation could alter the insurance needs you might have for your home or property. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary both during and after a home renovation project. Any savings we can come up with might help ease the pain of your renovation costs!

(334)-285-2881

You might think a standard homeowners policy provides coverage for all your valuables, but most policies provide limited or no coverage for certain items — sometimes expensive ones.

 If something catastrophic happened to your home (fire, tornado), would your insurance policy be enough to cover the cost of rebuilding it?

Here’s a good example – the average homeowners policy has a $1,000 or $1,500 coverage amount for jewelry for loss due to theft. These limits help keep homeowners policies affordable. If you own jewelry valued over $1,500 and it is stolen in a home burglary but your policy limit is $1,000, you will receive no more than $1,000 from the insurance company to replace the items that cost $1,500.

This is a stiutaion where an insurance endorsement (or rider) would provide The extra coverage you need for your valuable possessions. For an added premium amount, an insurance endorsement will help protect you should you suffer from the loss of more expensive valuables like jewelry, antiques, some artwork and even collectible items.

We offer these five tips to help you determine if you really need valuable items coverage.

1. Go over your insurance policy

The insurance policy is actually a contract between you and the insurance carrier. It enumerates the limits of compensation you can expect if valuable items are damaged or stolen. It is very likely certain items may be excluded, so you need to carefully review your policy and determine if you have enough coverage to meet your needs. We offer and highly recommend you take the opportunity to sit down with one of our skilled staff members and let us help you with this review!

2. Get your valuables appraised

You might actually have items that are worth a lot more than you think they are!  It will be very helpful to have them appraised so you can truly know if you have adequate coverage. An appraisal will help determine if your homeowners policy covers the entire value of your property.
With out professional evaluation, the actual value of some items like collectibles or higher end jewelry can be very difficult to know. We recommend that you have your valuable items appraised on a periodical basis. In the event that some items appreciate in value, additional coverage may be needed.

3. Make an inventory of your home 

Coming to a decision about the need to buy additional insurance will be much easier after you know exactly what items you own. Taking stock of possessions by creating an inventory is the only reliable way to do this. Be sure to remember to include items in your garage, basement and attic if you store items there. Make sure you list all items and include copies of receipts or appraisals if you have them This is very helpful should you ever have to file a claim with your insurance company.

4. Know about the crime rate in your area

If your community has high crime rate, it is more likely you will need additional coverage on your valuables. Very often, police departments offer reports of crime statistics publicly. Check out the following website: https://www.crimereports.com/  You might also install an alarm security system, as doing so may qualify you for a homeowners insurance discount, depending on your carrier.

5. Inventory your electronic equipment also

Due to advances in technology, it is now quite common to use electronic equipment to do their jobs and participate in regular private and social interaction. There are now many electronic devices that enhance the quality and ease of our lives. Most people have high-end computers and many other electronic devices the home. You definitely want to be sure that a homeowners policy covers the loss of these important items.

Safeguarding all your valuables – The need to insure valuable items is something you should discuss with your agent whenever you buy a homeowners policy. When you purchase additional coverage for high-cost items, we can help make sure you have a thorough understanding of all the limits and exclusions.

Let us help protect your property with a Home insurance policy and an insurance endorsement on valuable items. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!

(334)-285-2881

Often renters don’t realize how beneficial an insurance policy that protects their valuables in a catastrophe such as fire or theft.

It is a huge mistake to assume that damage or loss of your property will be covered by a landlord’s insurance policy!. Rental property owners commonly carry only enough insurance to repair or replace the building or structures. It is the renter responsibility to insure his or her own personal property..

While a landlord might be sympathetic towards you should you suffer a loss of personal property or become a victim of fire or burglary, they typically have no responsibility to replace or repair your personal property.

However, a good renters insurance policy will offer similar general personal property coverage as a homeowners policy would. This protects you against a loss from such things as theft, vandalism, fire, windstorms, lightning and even water damage from a busted water pipe..

 In the event that a rental property becomes uninhabitable, a renters insurance policy can even help offset some of the expenses necessary to relocate and temporarily live elsewhere. .

Renting is a popular lifestyle alternative to home ownership, however renters insurance is overlooked by most. Statistically, 37% of U.S. housing units are renter occupied, but most are uninsured. A recent study by the Insurance Information Institute showed that only 41 percent of renters own renters insurance.

A common error is the assumption that you don’t own enough items of value to make renters insurance coverage worth the cost. In truth however, the cost of replacing clothes, furniture, electronics and computers and even books easily adds up a cost of thousands of dollars.

Thinking in terms of Actual Cash Value vs. Full Replacement of an item is an essential consideration for renters when deciding on an actual cash value renters policy or a policy that covers the full cost of replacement.

Actual cash value coverage will allow an insurer to depreciate lost or damaged valuables based on their age. An example would be a 10-year-old couch. If it was stolen, its actual cash value would be similar to the cost of a used couch of similar age and condition. However, with a policy that covers a couch at full-replacement value, the insurer would compensate the policy owner based on what the cost of a new couch of the same quality is without applying any depreciation.

Then there is Renters Liability Coverage. Most renters insurance does more than just help replace valuables. It can help protect you from claims  or allegations of negligence. Just like standard homeowners insurance, renters insurance protects your liability for any injuries or property damage that you, family members or pets may inflict on others.

An example of this might be if you host a party on your rented property and someone slips and falls and gets hurt. You could possibly be held financially liable for the cost of treating their injuries. The liability protection of a good renters policy will pay for legal damages, up to policy limits in the event you were found to be negligent in causing an injury. The policy would even pay for legal defense of the renter.

You always wat to be sure and choose a renters policy with liability limits that are adequate to protect your own personal worth.

We can help protect you and your property with a quality renters insurance policy. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!

(334)-285-2881

If something catastrophic happened to your home (fire, tornado), would your insurance policy be enough to cover the cost of rebuilding it?

 If your home is not insured up to its full replacement cost, you might have to come out of pocket to build it anew! Depending on how much time has passed since you first insured your home, how many and what kind of improvements you’ve made over the years, you may not be insured adequately to cover the full cost of rebuilding.

The costs associated with rebuilding your home might actually differ from it’s current market value. The costs of materials, labor and contractor fees can vary greatly from year to year and from location to location. Replacement cost estimates should take all of these things into consideration.

Key factors that impact the cost you pay for rebuilding a home:

• Size / Actual living area in square feet. 
• Design or style of a home.
• Construction materials (wood frame, metal frame or brick). 
• Number and types of functional rooms like kitchens and baths. 
• Type and Quality of any custom materials. 
• Garage or Carport structure (attached, detached, built-in). 
• Specialized features such as fireplaces, porches and decks, skylights).
• Additions or enhancements made after initial construction such as finished basements, over garage apartments.

We recommend the following steps to take to be sure you are adequately covered:

• Come talk to us about the dwelling coverage on your homeowners insurance policy.
• Let us use our professional tools to help estimate your home’s true replacement cost.
• Re-evaluate your home’s replacement cost annually with us, especially if you have made improvements to your home. Be aware that even small improvements can impact the cost to rebuild your home.

Let us help protect your property with a Home insurance policy. Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!

(334)-285-2881

Tips to Help You Avoid Becoming a Victim of Identity Theft

 A victim of Identity theft can spend many months and sometimes years correcting the damage done by fraud caused by the theft of information associated with their bank accounts and credit cards. Just getting a credit rating corrected can be a nightmare. Take the following advice to protect yourself against identity theft.

 True Identity theft occurs when someone acquires your personal information such as your Social Security ID number or bank account or credit card numbers and uses that information to “impersonate” you, thereby stealing and using your identity for their own personal gain.

The most common use is for financial gain. It is common for identity thieves to do one or more of the following:

• Steal credit card numbers to purchase goods for themselves or others
• Divert money from someone’s bank account to their own or cash a falsified check
• Intercept and open an unauthorized credit card from your mailbox
• Take out unauthorized bank loans using your information

On occasion, very intricate schemes are used by criminals to pass the stolen personal information on as their own to obtain employment, take out insurance policies and even rent property or qualify for a mortgage all in the victim’s name.

How Do They Get Away With Such Atrocities?

• Obtaining personal ID information online – Common identity theft scams utilize a process called ‘phishing’ by sending out email messages that pretend to be from real financial or other online organizations in order to acquire sensitive account information. Computer servers at large institutions are often targets for hackers as well. Online shopping / E-commerce websites lacking adequate security safeguards can be a risk as well.
• Soliciting personal information by phone calls – If you did not make a phone call yourself, you should never give any of your private data to a caller. Any legitimate financial institution or business would never ask someone to provide such information over the phone.
• Theft of physical documents the information in them – Often an identity theft case results from lost or stolen personal items such as a wallet or purse. To prevent misuse, merchants may require a Social Security number or other credit information on a written applications—these documents can be stolen and identity thieves then use the information in them. For those thieves who are truly inspired, ‘dumpster diving’ (rummaging through garbage cans and dumpsters) can often provide an opportunity to collect financial information discarded by people.
• Theft or ‘borrowing’ hardware – Laptops, tablets, smart phones and thumb drives are all electronic data storage devices and they can be a very good source of personal identity information.

How Does ID Theft Impact Someone?

When Identity Theft occurs, the time it takes to determine the extent of fraud, and the processes involved to correct the misinformation can take months or years. Everything from having to close bank accounts, re-negotiate financial contracts and even hire attorneys to broker the operations can be necessary. During that time, the victim can be left to deal with lower credit scores, making it difficult or impossible to obtain new credit, qualify for loans or sometimes even finding employment.

Can I Get Identity Theft Insurance?

Most credit cards, after the card has been reported as missing or stolen, will hold someone liable for a stated amount of the fraudulent charges (see your credit card agreement fine print). Some Homeowners insurance or renters policies may offer some limited amount of protection for the loss of cash or credit cards (again, see the fine print on the policy).

With those things being possible, it remains a fact that identity theft involves far more than just financial loss. The consequences such as damage to personal credit and reputation that can take large amounts of time and expensive professional expertise to correct are difficult to deal with. For that reason, often companies provide insurance products that not only cover costs associated with recovery from identity theft, including “restoration” services designed to expedite the process.

There is a great deal of variance in policies from insurer to insurer and also by state. Coverage / Service provided could include:

• Provision of a consumer fraud specialist.
• Replacement of government issue ID
• Assistance in civil judgments, criminal cases, audits or hearings associated with fraud by the ID thief
• Services provided to help victims reclaim their identity and restore credit ratings
• Coverage for attorney’s fees
• Provision of reimbursement of administrative expenses

How to Prevent or Avoid Becoming a Victim of Identity Theft

• Carry only the minimum amount of personal info in a purse or wallet that is necessary. Carry only minimal credit cards. Don’t carry your social security card or your passport unless it is absolutely necessary.
• Keep a list of all your credit cards, account numbers and the emergency toll free numbers for each to make reporting lost or stolen cards easier and faster. Keep this document locked up securely.
• Keep all stored statements locked away securely.
• Use caution when using your credit card to make purchases. Make it a habit to keep your wallet secured in your hand until your card is returned to you. Shield your card with your hand when entering PIN numbers . Always try to be aware of who is around you if you give out personal information verbally.
• Never leave or throw away a credit or ATM receipt. If you leave them on a counter or put them in shopping bags, they might get picked up by someone.
• Never give out any personal information on the phone, through the mail or over the Internet. Unless you initiated the contact via a known contact point, you cannot be sure you know who you are dealing with.
• Shop online with extreme caution. You should use only secure, authenticated websites for online purchases. When making a purchase online, be sure to look for the locked padlock image displayed by your browser’s status bar or even better, look for “https://” (rather than http://) in your browser’s URL window—the “s” indicates a higher level of security. Do not make online purchases if you have any concerns about the authenticity of a web page.
• Always remain hyper aware of ‘phishing’ and ‘pharming’ scams. Using these techniques, criminals create sometimes very realistic but fake emails and websites what mimic sites from legitimate organizations. Use extreme caution when opening any email not originating from someone you know personally. Do not open attachments or reply to FB messages from unknown sources. You should never, under any circumstances give out personal, financial or password related information via email or on social media sites.
• Always keep your computer security and antivirus programs up to date. Using firewalls, anti-spyware and anti-virus programs is a must.
• Regularly monitor all of your accounts. You cannot afford to depend only on the credit card companies or banks to detect suspicious activity on your accounts. Carefully review all your bank and credit card statements to be sure you recognize all transactions and that they are accurate. Should you see a questionable transaction, don’t delay and contact the credit card company or bank immediately. 
• Order copies of your credit report and review for errors. Preferably, get one from each of the three major credit reporting bureaus (Equifax, Experian, TransUnion). By law, you should be able to get at least one for free, and many banks and other financial institutions provide them as a service to their customers.
• Credit reports contain information about where you work, have worked and residences you have or have had, past and present credit accounts opened in your name, your bills payment habits, criminal actions, and bankruptcy activity. You should regularly make sure credit reports are explicitly accurate and do not include activities you did not authorize.
• It is possible, and sometimes advisable to place fraud alerts with the major credit bureaus. Setting up a fraud alert will ensure that creditors will have to contact you before opening any new accounts making any changes (such as address updates) to your existing accounts. This will make it significantly more difficult for an identity thief to set up accounts in your name. If you set this up with just one of the credit bureaus, by the letter of the law, the bureau you contact is then required to update the other two. Be aware however that setting up a fraud alert can make processes like buying a car, or getting a lease or mortgage difficult for you as well, as it introduces a lot of red tape to the process.
• ALWAYS use secure passwords for your credit card, bank and phone accounts. It is advisable that you do not use information such as your mother’s maiden name, your birth date, any part of your Social Security number or phone number, or names of a spouse or children as part of your password. It is recommended that you change your passwords regularly, and do not use the same password for multiple accounts. In the event you suspect a problem with a credit card or bank account, change your password and contact that entity.
• Either burn or shred documents containing personal information before you dispose of them. This includes credit card or bank statements, charge receipts or credit card applications.

What Should You Do if You Think You’ve Been Victimized By an Identity Thief?

If your personal information has been compromised in any way; a stolen wallet, credit cards or maybe a phishing scam, you should report it immediately to the credit card companies, banks and other financial institutions. You should also report it to the police. It is a crime!  You should obtain a copy of the police report to use for filing an insurance claim.

In the event you are a victim of a phishing scam or other electronic incident, immediately report the incident as above, and submit a fraud alert to a credit reporting company.

To learn more about any potential large scale data breaches and privacy issues, check out the non-profit Privacy Rights Clearing House.

Identity theft incidents or attempts should also be reported to federal agencies that monitor them, such as the FBI Internet Crime Complaint Center and the Federal Trade Commission (FTC) Consumer Information Identity Theft. These agencies can provide further advice and assistance.

These tips were inspired by the article “Identity theft insurance – Steps and advice to help protect you from identity predators.” www.iii.org. 

Please call us at the Liveoak Agency to discuss your current insurance policies, and any changes that might be necessary!

(334)-285-2881