Recap: Spending Your Tax Refund

Name: Vargas & Vargas Insurance
Address: 1133 Washington St, Dorchester, MA, 02124
Telephone: 617-298-0655

Posted on April 24, 2018May 25, 2018 by cvargas

“In this world nothing can be said to be certain, except death and taxes.” – Benjamin Franklin

Tax Day for this year has officially come and gone – are you waiting on a refund? It is estimated that 80% of people receive refunds on their income taxes, so let us ask you this – What are you going to spend your refund money on? If you want your windfall to go to work for you, here are a few ideas on how to spend it:

Pay off your existing debts, like your mortgage, car loan, student loans, or credit card balances. Most financial planning experts recommend paying off the one with the highest interest rate first.
Make improvements to your Boston area home, whether it’s to put off the cost of routine maintenance, improve your energy efficiency, or starting that DIY project you’ve been eyeing.
Invest the money in an emergency fund or a retirement account.
Take a vacation with your family to relax or make fun memories.

You could also use your 2018 tax refund to prepare for the unexpected with a Massachusetts life insurance policy. For more information, call our five-star insurance agency at 617-298-0655. We can explain to you the difference between whole and term life insurance, and help you decide which policy is right for you with a free quote. Don’t wait any longer, call now!

Steps to Take After Closing on a Boston Home

Posted on April 23, 2018April 19, 2018 by cvargas

Whether you’re a first-time home buyer or you’ve been through the home buying process before, you may ask yourself: “Ok, closing is over… now what?” The truth is that once all the paperwork is signed, you’ve got your work cut out for you! Here are a few things to add to your “Post Closing To-Do List.”

Store Your Important Documents

When you close on a home, you will be entrusted with many papers regarding your home. When in doubt, don’t throw it out! Keep these papers in a safe place in case you need them in the future. One of the best things that you can do is scan these papers and store them in the cloud, keeping the originals in a safe deposit box.

Put Safety First

Without question, one of the first things you should do when you get the keys to your new place is to change the locks. You never know who holds a copy of the existing locks, so it’s best to start fresh. The cost that you incur will be well worth the peace of mind that it brings to know that copies of your homes keys are floating around the neighborhood, especially given the possibility that previous homeowners could have given out copies to maintenance workers or others. Also make sure that you update the pin number on the existing security system, if you choose to renew the service.

Clean to Your Own Standards

The home is empty, so this may be your only opportunity to do a deep cleaning without having furniture in the way. If you are particular about how things are done you may opt to do the initial cleaning yourself. Otherwise, there are many home cleaning services in the Boston area that would be happy to do a one-time job that will get into every nook and cranny so that you can start with a (literal) clean slate.

Now is also a great time to have a pest control service come to treat your property. Some mortgage lenders will require this as a part of their contract, but it is probably a good idea regardless.

Make Improvements

After everything has been cleaned, you may choose to make some improvements to your new home. The complexity of the improvements that you choose is up to you! You could decide that your home is perfect as-is, or that it simply needs a new coat of paint. Painting is an easy way to give a home a fresh feeling, and to make it feel more like your own space.

There are also more involved projects that you may want to take on, like remodeling the kitchen or adding a pool. It’s your home – the sky is the limit!

Familiarize Yourself with Necessities

When you own a home, there are a few things that you need to be able to locate in a jiffy. One is the water system shutoff. If a pipe ever bursts, you don’t want to have to wonder where to go to stop the water. Also check the breaker box and make sure that everything is well labeled, and that there is a battery-operated light nearby so that you’re ready for a power outage.

Before you move in, have a professional check and perform maintenance on your home’s cooling and heating systems, as well as the electrical outlets and plumbing. You probably already had a professional inspection, but it never hurts to have the first maintenance out of the way so that you can establish a routine.

Now is also a great time to ensure that the home’s smoke detectors and carbon monoxide detectors are working properly. Add a recurring reminder to your calendar to check these detectors twice a year – typically it is recommended that this be done during the Daylight Saving Time clock changes.

Move In!

Once you have done the things outlined above, it’s time to start moving in! This is pretty self-explanatory, just make sure that you’re careful if you or any loved ones does any of the heavy lifting – the last thing you need when trying to set up a new home is an injury. If you’re hiring professional movers, check to make sure that they have the right insurance coverage so that you can’t be held liable if any of their workers are injured on the job. Last but not least, ask your Massachusetts insurance agent about how your possessions will be covered during your move, and how you should file a claim if anything is damaged or broken.

Ensure That You’re Prepared

You never know when trouble will strike, so make sure that you’re ready for anything. Create or practice your family emergency plan. Make sure that all members of your household know where the emergency kit is kept, and how to use everything in it. Also keep a list of emergency contacts where everyone can access it, including the phone number for your favorite local insurance agency.

As a new homeowner, you need to make sure that you have the right insurance protection. This means buying the right amount of coverage, not just the minimum amount required by your lender. To find out what types of coverage you should have for your Boston home, call Vargas and Vargas Insurance Agency at 617-298-0655.

Recap: Credit Score

Posted on April 20, 2018May 25, 2018 by cvargas

“No man will make a great leader who wants to do it all himself or get all the credit for doing it.” – Andrew Carnegie

Every person has a few numbers that define them. One of the most important financial numbers in your life is your credit score. This number affects your life in many ways, including whether you will be eligible for car loans and mortgages, and the interest you pay on these loans.

But don’t believe everything that you hear about your credit score. There are many myths floating around, including:

Your credit score measures how rich or poor you are
It doesn’t matter how much of your available credit that you use
Only one person in a relationship has to have good credit
You have to carry a balance to have a good score

For more information about what a credit score determines, and how you can raise yours, check out our full blog post from last week. We even gave some tips on how to establish credit for the first time and a few ways that you can improve your credit score.

And remember, at Vargas and Vargas Insurance Agency we can help you with your home insurance once your great credit helps you get approved for a mortgage, or your car insurance if you’re in the market for a new vehicle. Call 617-298-0655 for a free car or home insurance quote.

Recap: Insurance Mistakes

Posted on April 17, 2018May 25, 2018 by cvargas

“Each life is made up of mistakes and learning, waiting and growing, practicing patience and being persistent.” – Billy Graham

As the saying goes, “To err is human.” That doesn’t mean, however, that you should be ok with making easily avoidable mistakes. This includes the insurance mistakes that we detailed in our blog post last week! At Vargas and Vargas Insurance Agency, our experienced Massachusetts insurance agents will give you advice and review your insurance policies to ensure that you don’t make common insurance mistakes like these:

Insuring your home for its market value instead of the cost to rebuild.
Not having a home inventory in the event that you suffer a major loss.
Skipping out on policies like flood insurance and umbrella insurance.
Buying only the minimum amount of liability insurance with your auto policy.
Forgetting to weigh in on the premium vs. deductible trade-off.
Paying for unnecessary business insurance policies.
Failing to update your insurance policies regularly.

Want a free and no-obligation insurance review? Just call our agency at 617-298-0655 to talk to a great Boston insurance agent about whether your policies will provide the necessary amount of coverage if you make a claim. Also take a minute to subscribe to our blog so that you don’t miss any of our great upcoming content, including insurance tips and tricks, summertime topics, life in Boston, and much more.

How to Spend Your Tax Refund

Posted on April 16, 2018April 11, 2018 by cvargas

Tax Day is almost here! Have you submitted your Federal and Massachusetts income taxes yet? If you have, you may have received a tax refund! Whether you receive any money (and, if so, how much you receive) is different for every person, but one thing is always the same: the need to put that refund money to good use.

Sure, some people will look at their tax refund as an unexpected windfall and use it to purchase a luxury item or put it toward a vacation, but it’s just as easy to make that money work for you! Here are just a few ideas on how to use your payout wisely.

Pay off debt. It may seem like a boring way to spend your refund, but paying off debts now will mean spending less in interest in the future. Can’t decide what to pay off? Personal finance professionals recommend focusing on ‘expensive’ debt – that means paying off the debt with the highest interest rate first.

Start an emergency fund. If your debt is already under control, maybe you should put the money into a savings account. It is often recommended that everyone has at least three months’ worth of living expenses put aside for emergencies. It may seem like a lot, but you will be glad to have that money ready to go if you lose your job, have to pay for an expensive car repair, or make a trip to the emergency room. Remember – that’s three (or more) months’ worth of your typical expenses, not income.

Plan for your child’s future. If you have a family, you know how expensive it can be to raise children. You feel like you’re spending a fortune on diapers when they’re infants, and it only gets worse from there. If you have decided to help with your kid’s secondary education (or if you want to buy them a car or contribute to their wedding) you should start saving sooner rather than later. For education savings, look into the benefits of a 529 plan over a traditional savings account.

Protect your family. It’s impossible to know what the future holds for each of us – that’s why it is so important to have the right insurance protection. If you were to unexpectedly pass away, what expenses would you leave for your family? A life insurance policy would help with funeral expenses and other burdens, so talk to your Massachusetts insurance agent about how you can use your tax refund money to set up this policy and protect your loves ones.

Invest in your future. Are you putting money into your retirement accounts? Most people are, but very few people know when they will be able to retire based on their savings projections. One thing is for certain – money put into a savings account early will grow much more than money saved at the last minute. Consider using some of your tax refund to give your retirement accounts a much-deserved boost.

Improve your home. You spend a lot of time in your home, so maybe you should spend some of your tax refund making improvements. There are lots of DIY projects that you can take on in a weekend that will make a huge difference in your home, like planting a garden, installing crown molding, or making an art project to fill a blank space on a wall. You could even just save a portion of your refund for the inevitable repairs and maintenance that comes as a part of homeownership.

It’s also important to remember that your Massachusetts home insurance policy could cover you for certain repairs. If you have any questions about whether your situation is covered, call Vargas and Vargas Insurance Agency!

Pay it forward. Donating a part of your tax refund not only feels great, but if you save your receipt and it could reduce your tax bill for next year! There are even several health benefits associated with donating to charity.

And, there is one more thing that you could use your tax refund for – At the end of the day, if you want to use your tax refund to make memories with your loved ones, that is great too! Where will your next vacation take you? Many young families save for a trip to Disney World, but if you prefer to stay local, there are lots of vacation spots here in the state of Massachusetts, from the Berkshires all the way to Cape Cod!

So, will you follow this advice and put your tax refund money toward one (or more) of these goals? If you want to learn more about the benefits of having a life insurance policy, call 617-298-0655 and speak to a Vargas and Vargas Insurance agent. We can tell you all the ways that this policy will help protect your loved ones, and whether a term or a whole life insurance policy is right for you. We can even give you a free quote, making sure that you get the maximum discounts on your new protection.

Recap: Preparing for April Showers

Posted on April 13, 2018May 25, 2018 by cvargas

“You have to accept the storms and the rainy days and the things in life that you sometimes don’t want to face.” – Bai Ling

April is not in full swing, and we’re starting to see why the saying is “April Showers Bring May Flowers.” Did you see our blog from last week with advice on how to handle these Spring rainstorms? In case you missed it, here are just a few of the tips that we gave:

Prepare for April showers by making sure that your emergency kit is stocked.
Perform home maintenance tasks like cleaning gutters and trimming trees to ensure that you are storm ready.
If you are a gardener, April is a great time to plan your layout and plant seeds so that you can harness the rain!
Remove standing water around your home to eliminate breeding grounds for pests.
Check your sump pump to ensure it is working as intended during storms and snow melts.
Review tips for driving in the rain, especially how to handle your vehicle if it hydroplanes.
Buy rain gear before you need it.

If you’re ready to start your Spring Cleaning for the year, remember that Vargas and Vargas Insurance Agency is here to help dust off your insurance policies. Call and speak to your Massachusetts insurance agent about reviewing your home insurance, auto insurance, etc. to check for thorough coverage and opportunities for savings. One quick call to 617-298-0655 will check this item off your to-do list!

Know More about Your Credit Score

Posted on April 12, 2018April 6, 2018 by cvargas

The credit score – a seemingly ‘all-knowing’ number that will determine your eligibility to get a mortgage or rent an apartment, buy a car, start a business, and more. This little number is a huge part of your life, so you need to do what you can to get it as high as possible. But, you may say, “it seems so arbitrary! What can I do to raise it?”

Never fear, dear reader! The professionals here at Vargas and Vargas Insurance Agency are here to demystify the credit score. Here are the details on many of the most-asked credit score issues:

What is a Credit Score?

When making a decision about whether you’re a good candidate for a loan, institutions want some credit history. Rather than sift through your entire history, though, they quantify your past spending. Credit bureaus take many factors and turn it into a number between (generally) 300 and 850. They pass this number on to the institution you’re looking to borrow from so that a decision can be reached.

What affects Your Credit?

The three credit bureaus (Experian, TransUnion, and Equifax) take many things into account when determining your credit score. Each is slightly different and has differing weights, but generally the things that will affect you the most are:

Whether you pay your bills on time
How much of your available credit is being used.
The types of credit you carry.
The number of active credit accounts you have open.

Establishing Credit

For young people and those that have not previously taken out a loan or owned a credit card, the question of how to establish credit can feel like a Catch-22. Most places want you to have a credit history before they will extend you any additional credit, so starting out is tricky.

Thankfully, there are a few products available to new borrowers. One is a secured credit card – you may open this line of credit by providing a deposit to back the card, and you can reclaim the deposit when the card is closed. You can also open a traditional credit card with a co-signer that has an established credit history.

Another way that many people establish their credit is with a student loan. There are many types of student loans available, so if this is the route you wish to take, do your homework to find the product that best suits your needs.

Improving Your Credit Score

If you’re looking to buy a car or apply for a mortgage, you may want to improve your credit score. There are several ways to raise your credit score. The quickest is to check all three of your credit reports to ensure that there are no mistakes.

Once you have made sure that your credit reports reflect your financial standing, you can move on to other methods of raising your score. Be warned, though, that it will take some time before you see an improvement. To see your credit score increase, you will need a history of on-time payments with a variety of lines of credit that you have carried for a long time.

Remember also that your credit score will take a small hit when you apply for a new line of credit, so if you want to apply for a mortgage in the near future, ask a financial planner whether you should wait to open a new credit account or purchase a new car.

Myths About Credit Scores

Don’t listen to everything you hear when it comes to your credit score. There are lots of myths floating around that aren’t true! Like these:

Your credit score measures how rich or poor you are – People with less income that have established credit and pay their bills on time can have a better score than higher income people with little to no credit and a history of late payments.
It doesn’t matter how much of your available credit that you use – Credit utilization is a key factor when determining your score. Often, people with better credit use far less of their available credit than people with low credit.
Only one person in a relationship has to have good credit – When you apply for a loan or mortgage with your partner, both of your scores will be analyzed.
You have to carry a balance to have a good score – In fact, you can pay off your card(s) in full each month and still have a great score. Paying in full also means that you won’t have to pay any interest!

Does that answer all of your questions about credit scores and how they affect you? If you have more, reach out to us – we can direct you to a professional with the answers.

And if your credit score recently helped you get approved for a home, car, or business loan, call us! We can get you set up with the right insurance policy to protect you. Our quotes and insurance reviews are always free, so you have nothing to lose.

Common Insurance Mistakes (and How to Avoid Them)

Posted on April 9, 2018April 4, 2018 by cvargas

Making mistakes is a part of life. We are all guilty of having faults and making errors, but it’s important to do what you can to minimize your mistakes, especially the ones that could be costly. Insurance is a product meant to help you financially recover if something happens to something you value. That is why it is so important to have the right coverage. The agents here at Vargas and Vargas Insurance Agency want to make sure that you are fully protected, so ensure that these common insurance mistakes don’t apply to you.

Home Insurance Mistakes

Insuring your home for its market value – If your home is destroyed, you will need to rebuild it. This is why most insurance professionals recommend that you insure your home for its rebuilding cost.
Thinking home insurance will always cover you – There are limits on every insurance policy, and home insurance is no different. For complete coverage, you may need to purchase additional riders or policies, like earthquake and flood insurance.
Skipping a home inventory – While we hope that you never have to deal with this, home insurance will cover you if you are ever the victim of a total loss. In that case, you will need to provide a list of possessions when you submit your claim. Wouldn’t it be a lot easier to make this list now, instead of trying to recall everything you own when it’s gone? That’s why we recommend making a home inventory!

If you don’t own a home, you’re not off the hook! Renters insurance and condo insurance are also available to make sure that you are completely covered even if you’re not a homeowner in the traditional sense. And these policies are very important!

Auto Insurance Mistakes

Buying the minimum possible amount of liability protection – As a driver in the state of Massachusetts, you are required to have a certain minimum amount of coverage. Some people buy just that amount, not realizing that they should purchase coverage above and beyond that amount. Talk to a Massachusetts car insurance expert to find out how much coverage they recommend before you scrape by without enough protection.
Ignoring coverage add-ons – When you purchase auto insurance, you will have several options that you can add to your policy. Instead of declining all of them to lower your cost, consider the added protection they will offer and if they make sense for you. Depending on your insurance provider and policy, this could include coverage for car rentals, roadside assistance, and more.
Not considering your deductible – When purchasing car insurance, you will have to consider the common insurance trade-off: deductible vs. premium. If you’re ok with spending a little more when you make a claim, you could have lower monthly payments. On the other hand, spending more on your premium could mean less of a cost when you have an issue.

There is a potential for an accident every time you get behind the wheel, so it’s important to make sure that you’re protected. Getting into a fender-bender or bumping into a neighbor’s mailbox is generally nothing to worry about, but you don’t want to cause a multi-car accident with serious injuries and then find out your underinsured.

Business Insurance Mistakes

Not enough coverage – The most common mistake when it comes to business insurance is simple: most businesses just don’t carry enough coverage. In fact, it’s almost impossible to have “too much” protection. Insurance is very cheap compared to the financial loss you would otherwise face, so talk to your insurance agent and see if you should increase your coverage.
Passing Up Liability Insurance – Did you see our blog post about Liability Insurance (aka Umbrella Insurance)? Having an umbrella over your existing business insurance is critical to ensure complete coverage, so don’t overlook this inexpensive way to add protection for your company.
Paying for unnecessary policies – Here at Vargas and Vargas Insurance Agency, we know that each business is unique. That’s why we take the time to get to know you and your business to determine the types of protection that you need. You need an agent that is experienced in providing unique policies to small businesses.

There is also one general insurance mistake that anyone is capable of: not updating policies. As time goes on, your insurance needs change. This means that you should plan on a chat with your Massachusetts insurance agent at least once a year to make sure that your insurance policies are still tailored to your needs.

If you think that you may be making one of these insurance mistakes, or if you just want an insurance professional to review your policies for gaps in coverage, call Vargas and Vargas Insurance Agency at 617-298-0655. We will do our best to ensure that your coverage is tailored to your needs, and that you will be able to rest easy if you ever need to file a claim on your Massachusetts home insurance, auto insurance, business insurance, or other policy.

Recap: Overlooked Home Maintenance Tasks

Posted on April 6, 2018May 25, 2018 by cvargas

“Light is the task where many share the toil.” – Homer

Last week, we posted a blog for homeowners detailing several of the most-forgotten home maintenance tasks. Were you able to add any of these to your ‘to-do’ list? The most ambitious of you may have already checked a few items off! To refresh those who may have missed the prior post, here are just a few of the tasks that you need to make sure get done around your home:

Clean your refrigerator coils and drip pan.
Flush your water heater.
Clean your dryer’s exhaust tube of lint and other debris.
Have your fireplace and chimney cleaned annually.
Lubricate your automatic garage door opener.
Change the filter of your A/C and heater.
Remove debris that has collected in your gutters.
Trim the trees and other greenery on your property.

Completing these tasks will ensure that your home is properly maintained, and many will even help you avoid having to file a claim on your Boston home insurance policy. That being said, however, if you do ever need to file an insurance claim, the Vargas and Vargas Insurance team is here for you! Just call our Stoughton or Dorchester office at 617-298-0655 to speak to a Massachusetts insurance agent that can help you with all of your insurance needs.

Are You Ready for April Showers?

Posted on April 5, 2018March 29, 2018 by cvargas

The first quarter of the year has passed, and April has arrived. Even though temperatures are still struggling to get above 50 degrees here in Boston, we are ready to welcome warmer weather. Unfortunately, as the saying goes, “April Showers Bring May Flowers,” meaning that this month has a history of being on the dreary side.

To help you prepare for the rainy weather associated with the month of April, we have amassed an “April Showers” guide for the rain. Here are tips for dealing with downpours and sprinkles alike:

Storm Preparedness

First and foremost, we have some tips about how to get ready for the storms themselves. In case of a severe storm, you should have an emergency kit in your home (and one in each car). Make sure that these kits include a flashlight and extra batteries! Also include nonperishable foods in case of an extended power outage (and make sure that you have a manual can opener in the house).

Make sure that your home is ready to take on a storm by performing some maintenance, including cleaning your gutters and trimming trees around your property. Here at Vargas and Vargas Insurance, we deal with a lot of Massachusetts home insurance claims related to broken tree limbs. Taking time ahead of spring and summer storms to prune weak branches could save you a headache in the future.

Gardening

It is still definitely chilly, but those of you with green thumbs may want to start planning out your garden soon so that you’re ready for planting season. Soon it will be time to plant seeds for winter harvest (like squash and potatoes) and even some flower and fruit seeds. Just make sure to wait to plant seedlings until it warms up a bit, otherwise you risk them dying due to frost!

Pest Control

The increased amount of rain in April makes it a perfect atmosphere for bugs and critters. Do your part to prevent mosquitoes by ensuring that your property isn’t a magnet for standing water.

Rain also gives you the perfect opportunity to check for leaks. And any place that water can get into your home, a bug can too! Pay special attention to doors and windows, as that is the most common place for a gap. Also check for small holes around electrical outlets.

If you are having a pest problem, a trained Massachusetts pest control professional can help get the issue under control as quickly as possible.

Plumbing

It may sound silly at first, but all of the excess water falling from the sky can put a strain on your home’s plumbing. This is especially true in Massachusetts, where we also have to deal with the yearly snow melt as Spring temperatures arrive.

Pay special attention to your sump pump (if there is one in your home). It is critical that your sump pump works properly so that excess water doesn’t cause mold and mildew, or worse, a flood! Test to ensure that it is working by pouring water into the pit and waiting for the motor to start. Watch to see it pump water out and away from your home. You should also ensure that the pump is free of leaves and debris.

Driving and Vehicle Tips

Some people like the dreariness of rain, and it is relaxing if you’re trying to sleep or want to cozy up and read a good book. On the other hand, though, rain can create treacherous driving conditions. This makes it so important to make sure that your car can handle slick roads – after all, there are over 1 million weather-related vehicle crashes every year, according to the Federal Highway Administration.

Before you drive in the rain, be sure that your tires are ready for the wet roads. They should be properly inflated according to the specifications in your car owner’s manual. The tread on your tires and your car’s brakes should also be checked.

When you are behind the wheel in the rain, you should increase the distance between you and the car that you are following, turn on your car’s headlights (it’s the law in Massachusetts!), and know how to handle your vehicle if you start to hydroplane.

Rain Gear

At some point in the next month or so, you are probably going to get caught in the rain. Now is the perfect time to make sure that you are ready when that moment arrives. After all, you don’t want to be running through a rainstorm thinking, “I should have bought that raincoat!”

A raincoat is a perfect place to start when it comes to buying gear. You should also have some waterproof boots and even a hat (otherwise make sure that your jacket has a hood). Everyone also should plan to have a few umbrellas. One for your home, one for your vehicle, and maybe even an extra for your workplace.

Hopefully this blog has helped you prepare for the rain-filled Spring months ahead. If you want, tell us about some of your favorite Spring activities on our Facebook page. And make sure to stay tuned to the blog for more insurance tips and tricks.

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