dsmWealth March 18, 2021

We aren’t born philanthropists. But we can learn easily enough, which is the mission of LINC, a part of the United Way of Central Iowa.

LINC – Lead, Impact, Network, Change – is a United Way-sponsored club, of sorts, that recruits young people, commits them to devoting at least a small part of their income to philanthropic efforts, and gets them involved in community affairs and volunteering to help make Des Moines a better place. It periodically hosts professional development sessions for its members. And it also sponsors some happy hours, just to keep things lively. LINC likes to call it a combination of good deeds, good times and good friends.

LINC clubs are scattered around the country, under United Way umbrellas. The Des Moines version launched five years ago and soon attracted nearly 100 young professional men and women (the target age is mid-20s to around 40, though there are a few senior citizens). Members commit to donating at least $250 a year, though Lindsay Cannaday, LINC’s director, said they often give more.

“It’s an incubator for young people and giving,” Cannaday said. “The goal is to engage them.”

Whatever funds that are raised are committed to essential services – food, shelter, clothing. “Young people tend to connect with that,” Cannaday said.

They see an immediate effect on their giving – a dollar they give today can be put to work buying food that is distributed tomorrow. LINC members now sit on committees at United Way that are responsible for directing funds that come to the organization.

The volunteer work done by LINC members focuses on essential needs as well. They might end up at Bidwell Riverside Center, on the south side, making sandwiches or sorting through donated clothing. Or they might chip in some time at the Food Bank of Iowa.

Once members get involved with LINC, Cannaday says they see the value of community involvement and often branch out to get involved in other nonprofit organizations.

Businesses, which typically are the foundation for United Way support, likewise are the usual feeder to LINC. Cannaday herself came to LINC from a job at Bankers Trust Co., and Ruan Cos. has been a big supporter. It’s a way for companies to bring young staffers together, she said, and maybe see them develop into leaders.

You can reach Cannaday at 515-246-6554 or via email at lindsay.cannaday@unitedwaydm.org.

How Your Credit Score Affects Your Auto Insurance

BY STEVE DINNEN

You drive a nice car. And you have a wreck of a credit score. That means you’ll pay more for auto insurance, perhaps as much as 80% more in Iowa.

Auto insurers say there is a correlation between a low credit score and the likelihood that you’ll file a claim. Precisely what’s behind that cause-and-effect equation isn't known, but they say it exists. In Iowa and 46 other states, credit scores can be taken into account when an insurer is figuring how much to charge you.

WalletHub looked at five of the nation’s largest insurers late last year and saw that, on average, someone with no credit score will pay 67% more than someone with an excellent credit score (above 781; the highest score is 850). In Iowa, the average is 42% higher, though it can range from zero (not all insurers use credit scores) to as high as 80%.

Consumer groups decry the murkiness of the scoring system as it relates to insurance and say it just replaces banned underwriting tools such as race or residence. But as of now it’s legal. Your end run around it will be to boost your score.

What Should Investors Do About Bond Volatility?

BY CHRIS TAYLOR FOR MONEY.COM

Investors are pretty used to volatility when it comes to stocks. Bonds? Not so much.

That’s why the last little while has been an eye-opener for many. In the last three months, for instance, the Vanguard Long-Term Bond ETF has sunk 13% — hardly what you might expect from the supposedly stable, boring part of your portfolio.

So what exactly is going on here — and what, if anything, should investors be doing about it?

Basically the asset class is the definition of a “mixed bag” right now. “Bonds will almost assuredly underperform in the near term when interest rates rise,” says Matt Bacon, a financial planner in Gaithersburg, Maryland.
“But the increased rates tend to help the asset class over the long term.”

To help understand what’s happening, consider this chain of events. Inflation has been ticking up, as we rebound from our pandemic-related economic slowdown. Morgan Stanley is predicting a peak around 2.6% in the spring, higher than we’ve been accustomed to in recent years. READ MORE

Pandemic Adding to Women's Financial Stress

BY MICHELLE FOX FOR CNBC

Financial anxiety for women is growing.

While studies have shown that women typically suffer from more money stress than men, the coronavirus pandemic has exacerbated the situation.

In fact, 79% of women report feeling weighed down by money and stress, up from 67% last fall, according to Fidelity Investments’ new Financial Sentiment Survey. Of those who reported financial worries, 72% were concerned about not having enough retirement savings to live comfortably and 71% were stressed about the ability to save for goals outside of retirement.

Balancing work and caregiving responsibilities, the ability to managing day-to-day expenses and job security also weighed heavily on their minds. READ MORE