Category Archives: Educational

Your Complete Guide to Retiring Alone

Saving for retirement involves lots of planning and calculations for every adult; however, if you are not married and don’t have children, you’ll need special strategies for retirement saving and planning.

If you are anticipating a single retirement, you are not alone. According to the U.S. Census, approximately half of all American adults are married. In addition, close to one-third of baby boomers don’t have children. Others may age alone due to the death of a spouse, a divorce or estranged or unavailable children.

Here’s what you need to know about retiring alone:

Create your own support system

One of the greatest challenges of retiring alone is not having a built-in support system through a spouse and children. Isolation and feelings of loneliness can be one of the strongest factors in early aging and general unwellness, so it’s a good idea to build your own support system if you’re planning on retiring single. This can take the form of a close group of friends who live near your home and are happy to join you for fun outings or occasional errands. If you don’t have this group of friends, make new ones by attending local social events through Meetup.com, befriending your neighbors in your community, or spending time at a senior center for active adults.

Identity your most trusted friend

It’s a good idea to choose one friend to serve as your emergency contact and to make decisions on your behalf in case you become incapacitated for any reason. Failure to appoint this person can mean decisions about your health and welfare can be relegated to your closest living relative, which may be someone with whom you have no relationship at all.

Choose your trusted contact and draw up a medical power of attorney so they can make decisions for you if the need arises. Save this person’s contact info in your phone, titled “In Case of Emergency,” or “ICE”, so someone can easily find this number in your contacts should the need arise.

Get creative about your housing options

When looking for a place to retire alone, there are loads of options to consider:

Move abroad to a country with a low cost of living where you can check out the sights, get to know the culture, and experiment with the cuisine.

Team up with a friend or two for built-in companionship and shared living expenses.

Choose a retirement community with senior-friendly amenities and walkable conveniences.

Consider long-term care insurance

Did you know that most adults turning age 65 will need long-term care at some point in their lives?

Long-term care can be expensive. As a single retiree, you’ll likely feel more secure knowing you have coverage for a long-term care facility or at-home care should the need arise. A long-term care policy may not be cheap, but may be worth the security it brings you.

Know your Social Security claiming options

If you have never been married, or have never had a marriage that lasted 10 years or more, your Social Security claiming options are simple. You are likely best waiting until age 70 to claim, unless you believe your life expectancy will be shorter than average. If you do claim your benefits before reaching full retirement age, and you continue working, make sure your income does not exceed the Social Security earnings limit at the time, or you may end up owing money.

If you have a previous marriage that lasted 10 years or longer, you may be able to claim a spousal benefit based on your ex’s earnings record and switch over to your own benefit amount when you reach full retirement age. If your spouse is deceased, you may be eligible for a widow/widower benefit based on your late partner’s earnings record.

Be sure to review your options carefully before making your choice.

A single retirement may look a bit different than a retirement shared with a life partner, but by planning ahead and following the tips outlined above, these can be the best years of your life.

Beware Stimulus and Tax Scams

It’s stimulus season and tax season at once, and scammers couldn’t be happier. They know that taxpayers are eager to get their hands on their stimulus payments and tax refunds. As consumers are working to file their taxes before the May 17 deadline, all that paperwork and payments mean people may be letting their guard down. For a scammer, nothing could be better!

The IRS is warning of a surge in scams as the tax agency continues processing tax returns and distributing stimulus payments to eligible adults who have not yet received them. Here’s all you need to know about the latest round of stimulus and tax scams:

How the scams play out

In the most recent IRS-related scams, scammers will con victims into filing phony tax returns, steal tax refunds or stimulus payments or impersonate the IRS to get victims to sign documents or share personal information, such as Social Security numbers or checking account numbers. The scams are pulled off via email, text message or phone. Sometimes, victims will be directed to another (bogus) website where their device will be infected with malware. Other times, the victim receives a 1099-G tax form for unemployment benefits they never claimed or received, because someone has filed for unemployment under their name. Unfortunately, the losses incurred through most of these scams can be difficult or impossible to recover.

What you need to know

As always, information is your best protection against these scams. Here’s what you need to know about the IRS, the stimulus payments and tax returns:

  • The IRS will never initiate contact by phone or email. If there is an issue with your taxes or stimulus payment, the agency will first communicate via mail.
  • There is no “processing fee” you need to pay before you can receive your stimulus payment or tax refund.
  • The IRS is not sending out text messages about the stimulus payments. If you receive a text message claiming you have a pending stimulus payment, it’s from a scammer.
  • There is no need to take any action to receive your stimulus payment. Likewise, aside from filing your tax return, there is nothing additional you need to do to receive your tax refund.

If you’ve been targeted

If you receive a suspicious phone call, text message or email that has allegedly been sent by the IRS, do not engage with the scammer. Block the number on your phone and mark the email as spam.

If you are a victim

If you are the victim of identity theft related to taxes or stimulus payments, there are steps you can take to mitigate the loss.

If you received a 1099-G for unemployment benefits you’ve never filed for or received, it’s best not to ignore it. Contact your state’s unemployment office to report the fraud. It should be able to send you a corrected 1099-G showing you did not get any benefits.

First, report the scam to the correct authorities. If a fraudulent tax return was filed in your name, the IRS will mail you a Letter 4883C or 6330C to verify your identity. You may also need to call the toll-free number provided on the letter and visit an IRS Taxpayer Assistance Center . After reporting the fraud, you’ll likely need to file a paper tax return. Complete an Identity Theft Affidavit (Form 14039) and attach it to the back of your paper return.

If you’ve mistakenly shared your information with a scammer and they’ve stolen your stimulus check, you will likewise need to let the IRS know. Visit Identitytheft.gov where you will receive a personal recovery plan that will hopefully minimize the damage done by the scammer and help you reclaim your lost funds.


It’s tax season and stimulus season, so it’s also scam season! Keep your guard up and follow the tips outlined here to prevent yourself from falling victim to one of the many circulating scams. Stay safe!

USAgencies Credit Union will never contact you to ask for any personal or account information, when in doubt, connect with us at (503) 275-0300 or toll-free (800) 452-0915.

Credit Union Protection Plans

Q: What exactly is a credit union protection plan like GAP, Mechanical Repair Coverage, and Debt Protection?

A: Purchasing a credit union protection plan can be a great way to ensure your loans and income are covered in any eventuality, but navigating the choices can be confusing.

Here’s what you need to know about the protection plans available at USAgencies Credit Union.

What is GAP insurance? 

GAP (guaranteed asset protection) insurance is an auto insurance add-on that pays the difference between the depreciated value of your car and what you still owe on the car in the event that your car is stolen or totaled. GAP insurance is only available for the current borrower on an auto loan, or current leaseholder, on the new vehicle. Coverage can also be available for eligible motorcycles, boats, RVs and campers.

GAP insurance is often recommended for drivers purchasing an expensive, new vehicle, considering that most new vehicles depreciate by 19% in their first year of ownership. This causes many drivers to be under water on their auto loans toward the beginning of the loan’s term.

Is GAP insurance for everyone?

GAP insurance is a great idea for all borrowers, but especially recommended for drivers who are, or may be, upside down on their auto loans. Drivers who have made a down payment of less than 20% on the auto loan, and/or who have a loan term that is 60 months or longer, will usually fall into this category.

GAP insurance is also a good idea for drivers leasing a new vehicle. Some leases will automatically include GAP coverage in their contracts.

What is Mechanical Repair Coverage? 

Collision insurance covers damage to your vehicle caused by accidents. Comprehensive coverage will pay for damage caused through other means, such as a windshield shattered by a rock. But who pays for damage caused by the natural wear and tear of a vehicle?

This is where Mechanical Repair Coverage (MRC) comes in. MRC will cover almost any kind of breakdown in your vehicle due to wear and tear so you don’t have to pay for these repairs on your own. Similar to purchasing an extended warranty on a vehicle, coverage can include a faulty transmission, a broken carburetor or a brake repair. MRC will not cover regular maintenance and upkeep of the car, such as replacing spark plugs, refiling fluids and changing the tires.

Is Mechanical Repair Coverage for everyone? 

Mechanical Repair Coverage (MRC) is especially recommended for drivers financing a new vehicle, as the repairs on these vehicles can be quite costly. An extended warranty may offer the same coverage, but is usually more expensive than an MRC plan.

In addition, it can be a good idea to purchase MRC for a vehicle the driver intends to keep for more than five years. MRC will also help ensure that the car remains fully functioning for years to come.

What is Debt Protection?

Life can be wonderful. But it can also get complicated when unexpected things happen. Protecting your loan payments against
death, disability, or involuntary unemployment could help protect your finances. Debt Protection provides income in the event that a policyholder is unable to earn an income due to a injury, disability or job loss.

According to the Social Security Administration, more than one in four 20-year-olds will experience a 90-day disability before they turn 67.

Is Debt Protection for everyone?

Purchasing Debt Protection can be a financially responsible move for any policyholder. This protection could cancel your loan balance or payments up to the contract maximums. Protect your loan payments today so you can worry a little less about tomorrow.


Protecting your loans, debts and earning potential can seem like a daunting task, but with the right plans in place, you can maintain your financial wellness for years to come.

Connect with USAgencies Credit Union for a quote or info on all your Loan Protection Needs today!

The Comprehensive Guide to Insurance Coverage

EX: Does talking about insurance make your eyes glaze over? You’re not alone!

Insurance premiums can take a big bite out of a monthly budget, but not having enough coverage can be even more costly. Let’s take a look at the five primary insurance types and the most important information to know about each one.

1. Health insurance

Health insurance is coverage that typically pays for medical, surgical and prescription drug expenses in exchange for a monthly premium. Many states mandate health insurance coverage and will collect fees, along with state taxes, from taxpayers who do not have sufficient coverage.

Types of health insurance plans

Health insurance plans are divided into two primary categories: public and private.

Public health insurance is provided at low or no cost through the federal and/or state government. The most common public insurance plans are:

  • Medicaid – Public insurance plan for low-income families and individuals. Eligibility requirements vary by state.
  • The Children’s Health Insurance Program (CHIP) – A federal and state program designed to cover children below the age of 18 whose families have incomes above the qualifications for Medicaid, but are too low to afford private health insurance.
  • Medicare – A federal health insurance program for Americans age 65 and older.

Private health insurance may be provided through an employer or purchased privately from the insurance provider, or through a broker.

These are the most common private health insurance plans:

  • HMO: Health Maintenance Organization – The most restrictive plans that only work with a network of healthcare providers. The insured must choose a primary care physician (PCP) who is in the network to benefit from coverage. To see an out-of-network specialist, the insured will need a referral from their PCP. HMOs tend to have cheaper premiums than other health insurance plans.
  • PPO: Preferred Provider Organization – The most flexible health insurance plans, which allow the insured to choose an in-network doctor at a lower cost, or an out-of-network doctor at a higher cost. There is no referral necessary to see a specialist. Premiums are generally more expensive than other plans.
  • EPO: Exclusive Provider Organization – A blend of HMO and PPO plans, EPOs do not cover out-of-network physicians, but do not require referrals for specialists. Premiums on EPOs fall between HMOs and PPOs.
  • POS: Point of Service – Another blend of HMO and PPO plans, POS plans will require a PCP on an HMO-style network, while also allowing out-of-network options at a higher cost. A referral is required for specialists. Premiums are generally more expensive than HMO plans but less expensive PPOs.

2. Life insurance

Life insurance is a contract between an insurance company and a policyholder that guarantees a sum of money to the policyholder’s designated beneficiaries when the policyholder dies, in exchange for monthly premiums paid during the insured’s lifetime.

Types of life insurance

These are the five most common kinds of life insurance plans:

  • Term insurance – The most basic form of life insurance, with a predetermined term, usually ranging from one to 10 years. Plans are renewable at the term’s end, but the premiums will increase with each renewal. Term policies generally have the cheapest premiums, but no cash value.
  • Whole life insurance – Offers policyholders a cash-value component coupled with increased protection. Premiums can be locked in throughout the term, and a portion of premiums goes toward the policy’s cash value. The insured can borrow up to 90% of the cash value, tax-free, but loans reduce the policy’s death benefit.
  • Universal life insurance – Offers increased flexibility for policyholders. Premiums can go up or down, or even be deferred within certain limits. Cash values can be accessed and withdrawn, though this directly decreases the death benefit. Face values can be modified as well.
  • Variable life insurance – Fixed premiums and investment options make this policy the choice for true risk-takers. The policyholder’s cash value will be invested in the insured’s choice of stock, bond or money market portfolio. Cash values and death benefits will fluctuate along with the investments’ performance. These policies usually have higher fees than universal life insurance, but all cash value accumulation grows tax-free.
  • Universal variable life insurance – A blend of universal and variable life insurance, these policies offer flexible premiums and the ability to modify face values, along with investment options.

3. Auto insurance

Auto insurance is a contract between a policyholder and insurance company, protecting the policyholder from financial loss in the event of an auto accident or theft. The coverage is provided in exchange for a monthly premium. Some form of auto insurance is required in all 50 states.

Types of auto insurance policies

These are the primary categories of auto insurance coverage:

  • Liability coverage – Includes coverage for bodily injuries, property damages or auto damages to another motorist if the policyholder is at fault.
  • Comprehensive coverage – Pays for damages and losses to the car that were not caused by another driver.
  • Personal injury protection – Covers medical bills for the policyholder and their passengers in the event of an accident.
  • Collision insurance – Covers damages to the policyholder’s car if it’s involved in an accident.
  • Uninsured/underinsured motorist protection – Pays for damages caused by another motorist who does not have sufficient (or any) coverage.
  • Gap insurance – Pays the difference between what the policyholder owes on a financed or leased vehicle and what it is valued at when there’s a total loss of the vehicle.

4. Long-term disability insurance

Long-term disability insurance is an insurance policy that provides income replacement for workers if they are unable to work due to a debilitating illness or injury.

Types of long-term disability insurance

There are two primary types of long-term disability insurance policies:

  • Own-occupation disability insurance defines a disability as an inability to work at your regular occupation. Benefits are paid even if the policyholder can work at another job.
  • Any-occupation disability insurance defines a disability as an inability to work at any occupation. These plans are generally cheaper, but claiming benefits can be more difficult.

5. Homeowners and renters’ insurance

Homeowners insurance is a policy designed to protect homeowners and their families from liability and financial loss in case of damage to their home and belongings in exchange for monthly premiums. Renters insurance is purchased by tenants and only covers damage or theft of their personal property.

Types of homeowners insurance policies

  • HO-2 – A policy that only protects against 16 specified perils.
  • HO-3 – A broad policy protecting against all perils other than those excluded in the policy.
  • HO-5 – A premium policy that usually protects newer homes and covers all perils, except the few excluded in the policy.
  • HO-6 – Insurance for co-ops/condominiums, which includes personal property coverage and liability coverage.

Each plan type will also include some extent of liability coverage. Most policies will only cover events if they are sudden and accidental. Some natural disasters, like earthquakes and floods, require a separate policy for coverage.

Types of renters’ insurance policies

Renters insurance policies will generally fall within either:

  • Replacement-cost plans – Will pay for the full cost of replacing your damaged or stolen belongings up to a predetermined cap. This plan offers more robust coverage, but premiums are generally higher.
  • Cash-value plans – Will only offer payouts to cover what the damaged item was worth at the time of the disaster.

Insurance is a big part of financial responsibility. Use our guide to help you make the right choices in all major types of insurance coverage.