Monthly Archives: January 2017

How to Save for Retirement at Every Age

Retirement Savings

How much do you need to retire? Will you continue working after age 65? Do you want to travel during your retirement? These are just a handful of questions that are important for retirement preparation. Unlike saving for a home or new vehicle, saving for retirement requires long-term commitment and goal oriented benchmarks. At Peoples Bank & Trust we want to help you succeed as you save, and offer these milestone marks:

Age 18-25: During this point in your life, you are discovering what you want to do, and how to get there. Focus on creating a solid foundation through a monthly budget, and designated emergency fund. If your employer offers a 401(k) option we highly recommend utilizing its potential by contributing the maximum amount your budget will allow. Always be sure to take advantage of a company matching policy if available.

Age 25-35: In addition to your 401(k), we also suggest opening an IRA. This enables you to continue to save without having your funds tied to an employer. Now is a great time to take advantage of other tax beneficial accounts, such as an H.S.A., 529, or Coverdell account. Both the 529 and Coverdell accounts aide you in saving for your child’s education without the burden taxes.

Age 35-45: One of the key aspects of retirement is making sure your money is where you need it when you need it. An experienced financial adviser can help you invest in appropriate stocks, bonds, and other financial strategies. Together you can construct a plan to ensure your risk decreases as you age, and be certain the funds you need are available upon retirement.

Age 45-55: Now is the time to examine your current career path, and determine the year at which you would like to retire. Although the average age of retirement is 66, this may not hold true for you. Whether you decide to retire later at 72, or earlier at 57, you’ll need to have this number available to help continue the development of your savings. To easily calculate your current savings projection, this tool can provide the most accurate information to help you make the most informed decision for your specific goal.

Age 55-66: During this time you may begin to qualify for distributions from your 401(k) and IRA. By postponing these distributions, you can continue to save, and work to build your retirement nest egg before you need it. Additionally, look into various employment options upon retirement. If you decide to work part-time for enjoyment, it could mean added savings to help you afford extra splurges in the future.

Age 66 and up: Once you have officially retired, you will begin to take distributions from your 401(k) and IRA. While both a 401(k) and Traditional IRA require you to accept funds after age 70 ½, a Roth IRA can remain untouched until you decide to use the money. For this reason, we recommend using a Roth IRA when your income levels allow.

We look forward to joining you on your journey to retirement. Whether it’s in 10 years or 50, it’s never too early to start saving!

Peoples Bank & Trust Co.

The Top Cyber Security Myths: Fact or Fiction?

Cybersecurity

The growing concern of cyber security continues to have Americans questioning the safety of their online information. While many cybersecurity statistics are meant to frighten consumers into action, we at Peoples Bank & Trust want to offer some clarification on the most common myths to help you stay safe online:

Myth #1: Every employee can impact your company’s cyber security.

FACT. While the 90s and early 2000’s presented consumers with the obstacles of viruses and malware, today’s issues typically revolve around more prevalent phishing schemes and ransomware. In these instances, a single employee can allow a Trojan email through by clicking its link to release a digital disaster. To most accurately deflect this dangerous risk, it has become paramount to not only train each employee on the safeties of cybersecurity but also hold continuing education as processes evolve as well.

Myth #2: Small and medium sized business are at a lower risk than large businesses.

FICTION. Contrary to belief, there are more small to medium sized businesses targeted in cyber crimes each year compared to their larger counterparts. While bigger corporations offer a larger pool of data and resources, typically smaller operations pose fewer barriers and are presumed an easier target. To help combat this assumption, small and medium business should look to advance their cyber strategy, and implement SBA (Small Business Administration) recommended practices to ensure the best protection for their business’s information.

Myth #4: It can’t happen to you.

FICTION. Even the best scenarios, a cyber-attack could still happen to you. Whether a large entity like Target or Home Depot is affected after you’ve shopped there, or perhaps you’ve clicked on a link that perhaps you shouldn’t have, the truth is, it can happen to anyone. With this in mind, there are preventative measures you can put in place as well as actions you can take after your information is compromised. To be more proactive in responding to these issues, we recommend checking your credit and debit transactions twice a month for fraudulent charges. This ensures any reported errors are acted on in a timely manner.

 
If you still have questions on the best cyber security practices for you or your business, stop by your nearest location today. We’d love to talk with you and see how Peoples Bank & Trust can your protect your financial information.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

6 Steps to Scoring Your Savings Goal

Savings Tips

Do your savings goals make you feel frozen? Get back on the ice this season, and let Peoples Bank & Trust help you win your personal financial game. We’ll show you how to keep pushing forward with these strategic hockey tactics:

Find the 5-hole.

One of the first and most important ways to save is to keep your eyes open! Whether it’s taking advantage of grocery store specials, buying household items in bulk, or cutting spending from your monthly budget, the biggest opportunity you have while saving money is continually searching for new ways to save.

Complete the hat-trick.

Before you start saving for the short-term items, be sure you have the long-term set in place. Just as in hockey, there are three things you need to make the best play of the game. Start by setting up an emergency savings account to help guard your savings. Follow up by opening a personal retirement account such as IRA to continually grow your savings. For the last trick of the play, we suggest creating a 529 or Coverdell account to help save for your child’s future education. These three accounts will help not only you score your savings goals but will assist you in winning your entire financial game as well.

Put your debt against the boards.

Show your debt whose boss, and push them against the glass. By aggressively paying off your outstanding debt, you make additional funds available to further your monthly savings. We recommend paying the minimum payment on each debt, and then using any surplus funds to add extra payments to help pay it off sooner. Once you have paid off a debt, use the funds from that allocation to help erase the next obstacle, one payment at a time.

Place your spending in the penalty box.

While working on your savings goals, look into your monthly spending to see where you can cut costs. Consider reducing your funds for eating out and entertainment. The extra money can go towards your debt, or once paid off, can help you achieve your savings goal sooner!

To help, there are some innovative apps available that can you visualize your various expenses.

Beat the buzzer.

Saving for retirement is a marathon, not a sprint. Like hockey, if you don’t play until the end, you may lose the game in the last five minutes. To help prevent this, we recommend working with a personal financial advisor, ensuring your funds are in the right place at the right time. If you make a pass and transfer them to stocks too late, you could lose money and valuable time. We suggest creating a strategic and well-coordinated retirement plan to make certain all your savings get time on the ice, and your key players continue to stay in the game.

Drop your gloves for additional fees.

Whether it’s big banks searching for unnecessary add-ons, or potential financial advisers looking for a percentage of earnings, don’t be afraid to negotiate fees you deem excessive. The business is certain to have referees to let you know if you’re asking too much. However, it never hurts to ask!

With our affordable deposit accounts and expert financial coaching, we look forward to helping you sink your upcoming goal in the back of the net! Stop by and meet our dedicated team today!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender