2025 Newsletter — Volume 3

Don't be fooled by imposter scams¹

What is an imposter scam? It's a scam where a fraudster lies and pretends to be someone they're not to trick you into giving them money, access to your financial accounts or your personal information.

How can you recognize an imposter scam? These types of scammers will typically try to:

• Convince you they're with the government or a business you recognize by faking the caller ID.
• Give you an employee ID or badge number, or use the name of a real government employee.
• Send official-looking letters with seals and make up government agency names that sound real but aren't.

How can you avoid these scams?

1. Verify their identity — Contact the individual or company directly using a trusted phone number. For suspicious emails, always check the email domain.
2. Never share personal information — Ensure that you know the identity of the person you're communicating with, and preferably, initiate the contact yourself before divulging any sensitive details over the phone or online.
3. Be cautious of urgency — Scammers frequently employ tactics that instill a sense of urgency and fear, compelling their victims to take swift action without careful consideration.
4. Use secure payment methods — It's essential to utilize secure and traceable billing methods to prevent fraudsters from accessing your information.

Imposter scams are constantly changing, so it's essential to remain alert. When you encounter offers or situations that seem too good to be true or raise any red flags, take the time to investigate further before proceeding. This precaution can help protect you from potential scams.

Understanding financial stressors²

Understanding your finances involves recognizing a variety of influences, some of which may be beyond your control. A pivotal step in achieving financial well-being is to identify the underlying causes of financial stress and assess how these elements affect your personal situation.

Since every individual's financial situation, psychological disposition and life experiences are unique, it’s important to understand that no single factor can be pinpointed as the root cause of financial stress. With that understanding, let’s explore some of the various potential sources of financial stress that one might encounter.

• Unplanned expenses
• Major savings goals
• Rising costs of basic needs
• Managing debt
• Lack of stable income

How compounding builds wealth³

Compound interest is a significant financial concept that may seem inconsequential initially. However, when combined with the element of time, it can greatly enhance the growth of your savings over the long term.

Put simply, compounding means earning returns on both an investment (called the principal) and the returns you have previously earned on the investment. Essentially, you earn money on money already earned. This works because the earnings are reinvested, becoming part of the principal, and helping it grow over time.

The saying “time is money” is particularly relevant when discussing compound interest. Time plays a vital role in the process of compounding. The longer you keep your money invested, the greater the opportunity for it to grow through compounding. To maximize the potential of your investments, it is advisable to begin investing as early as possible.

Learn more for insight on why time is so important and how to make compounding work for you.