Author Archives: PBTC Blogger

Farm Loans 101

“Let us not forget that the cultivation of the earth is the most important labor of man. When tillage begins, other arts will follow. The farmers, therefore, are the founders of civilization” (Daniel Webster). We love our farmers and believe they are the backbone of this nation. If you are new to farming or if it has been in your family for years, it’s important that you know about farm loans. Here are the basics you should be familiar with.

FSA

When talking about farm loans, we should first discuss what the FSA does for farmers. FSA stands for Farm Service Agency. They are a branch or agency of the US Department of Agriculture. You may be able to obtain a loan through the FSA if you meet certain requirements. If you need to start your farm, expand or sustain it, you are likely going to need a farm loan. Choosing a lender like Peoples Bank & Trust to help you through the process will be the first step.

Who Qualifies for FSA loans?

Farmers needing to buy equipment or livestock
Farmers desiring to expand their business/land
Farmers who have experienced a natural disaster

These loans are meant for those who are not able to get credit from a commercial lender. They are usually used by farmers within their first ten years of business. When you are eligible to receive credit from a commercial lender, you will no longer qualify for a loan through FSA.

Types of Farm Loans

Farmers have very specific needs. There are different types of loans that many farmers seek out to help their farming businesses thrive.

Operating Loans: These can be essential to the success of a farm. They help purchase things needed for daily operations like fertilizer, livestock, irrigation, seed and fuel.

Equipment Loans: No matter how big or small the farm, you’re going to need equipment to ensure its success. Equipment loans can be used to help buy things like tractors, grain bins and farm trucks.

Real Estate: This loan is for expanding your land holdings.

There are a variety of options available to farmers in terms of loans. Let us help you figure out a loan tailored to meet your business needs and goals.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How Do I Pay Off My Debt?

Extreme amounts of debt can weigh heavy on your shoulders. It has been found that extreme amounts of debt are linked to higher rates of suicide and depression. This is why it’s so important to have an understanding of good debt vs. bad debt and how you can go about paying back your debt efficiently.

Don’t Let it Define Your Life

You, of course, want to have your debt paid off as soon as possible. However, letting it define the value of your life is counterintuitive to being able to pay off the debt. You can enjoy your life while simultaneously paying off debt. A common saying about paying off debt is to think of it as a marathon and not a sprint. You aren’t going to have all of the debt paid off at once, but consistent payments will help get you there instead of burning out from sprinting.

Be Careful Who You Surround Yourself With

It’s hard to stick to a budget when you’re surrounding yourself with friends who want you to spend money with them. It’s difficult to say no to socializing because of the money. At the same time, you should be surrounding yourself with people who understand your financial priorities and support you in those goals. Spend time meeting with financial experts to help guide you in your investments and debt management.

Press Pause on Credit Cards

While credit cards are a great tool when used correctly, they can be a hindrance to paying off debt. Do your best to refrain from using them until you have your debt under control.

Utilize Extra Income

If you receive a bonus or a pay increase, place all or a portion of those funds towards your debt. You won’t notice the difference, besides seeing the decrease in your debt to income ratio!

Start a Payment Plan

In order to keep the momentum going, you should start paying off your most expensive debts first. This typically means the highest interest. Establish a set amount that you will pay each month and work it into your budget. Your amount should be more than the minimum payment due.

Don’t let your debt take over your life. Get control of your dues today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Boost Your Retirement Savings

Maybe you are already off to a good start when it comes to saving for retirement, but there may be some ways in which you can amp it up. If you could boost your retirement savings even by a little now, it can pay off big time later! Here’s how:

Step Up the 401(k)

Most companies offer a matching contribution of up to three percent to your 401(k). If you aren’t taking advantage of this now, make sure you do so immediately. Once you have established this for a year, consider ramping up your percentage by 1 percent. Every other year or so, increase the percentage. Because you are increasing it at a slow rate, it’s unlikely that you will really notice it month to month, but you’ll love seeing your account grow.

Don’t Cash Out

When switching to a new job, many people cash out their retirement policies. However, this can be damaging to your retirement portfolio and leave you with much less money. Consider rolling over these funds into an IRA or if possible, directly rolled over into your next employer’s plan.

Play Catch Up

If you are age 50 or more, you can participate in what is called “catch up contributions.” As of 2018, the government allowed an additional $6,000 contribution to 401(k) and 403(b) plans. IRAs were allotted an additional $1,000. Even though you are over the age of 50, these contributions still earn interest and can make a significant difference.

Don’t Spend Bonuses

It’s tempting to go and celebrate a big bonus or raise with a big purchase. However, the smart thing to do is to pretend that it never happened, and pour it into your retirement account. Whatever you want to use that money for now, you’ll be able to do even more with it later. The practice of delayed gratification is tough but worth it.

Cut Something Out

Think of a luxury item that you use every day. Maybe it’s something small that you don’t think twice about. Consider cutting it out and using the money you’ve been putting towards it for something better, like your golden years.

You can reach your retirement goals by staying focused throughout your earning lifetime. For more advice on your savings plans, you can count on us at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Cybersecurity Safety Tips for Your Business

Don’t let living your dream of owning your own business end because of cybercrime. Stay on top of the latest defenses when it comes to cybercrime by implementing even one of these tips for your business.

Never Assume You Are 100% Secure

Unfortunately, you can never be fully protected against a cyber threat. The minute you sit back and think that you are invulnerable is the best time for a cybercriminal to strike. There will always be a new potential threat. There may even be an employee mistake or a broken piece of data. It’s important to always be looking for ways to improve security.

Amp Up Authentication

Every point of digital access to the internal working of your company should be blocked by outsiders with authentication. Authentication is a way of signing into a device with a code only authorized users have access to. Many companies are switching to Multi-Factor Authentication, which requires users to confirm their identity twice, often through the device and then a phone. This is simply an added layer of protection.

Hire a Hacker

Not all hackers are ill-intentioned. Many work legally to help businesses discover the risks of penetrability. They will be able to evaluate areas that can use strengthening.

Email Education

The weakest point of business cyber defense is often employees. Even if the worker is well-intentioned, they can still make defense mistakes. One common area of cybercrime is email. It’s an easy way for the perpetrator to access your company internally. This is why it’s important to not only have spam filters but ensure that all employees go through email education so they know what a suspicious email looks like.

Be Aware of Personal Device Risks

Many businesses allow workers to bring in their personal devices and use them to conduct business. This can be dangerous, as there is likely not the same security software on their personal devices that you have for your business. This is another way for cybercriminals to get into your business’s information. One way to help with this and to still allow your employees the freedom of using their personal devices is to establish a “Bring Your Own Device” policy.

Get on the Cloud

Keep your important business information on the Cloud, in order to avoid it getting taken from you forever. It’s currently the most used technology for small businesses. You can utilize it for managing finances, storing, sharing and accessing information from anywhere.

These are just some of the basics of business cybersecurity. They are all fairly inexpensive and can likely save you from a headache of trouble if you were to get hacked. For more information on cybersecurity tips or business accounts, give us a call!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

8 Simple, Smarter Ways to Save

Do you feel like you’re always trying to save but never reach your savings goals? Sometimes, we can make it too complicated or have too rigid a plan that causes us to give up on it altogether. You can make 2020 the year of savings by following these bare-bones tips.

1. Start a Pantry Night

It’s all too easy to spend money dining out or grabbing a burger at the drive-through for the whole family. Stay ahead of the curve by allowing one night each week as a free for all in the pantry. You won’t have to worry about what to cook that night for the whole family. Everyone can find something simple for themselves to eat whether it’s cereal or leftovers. Some weeks it may take more creativity to come up with a meal, but use what you already have in stock.

2. Separate Need and Wants

We are constantly exposed to advertisements in a way like never before. Ads are perfectly crafted to peak your exact interest based on your internet search history. This can make the temptation to buy even stronger. Don’t buy anything instinctively, wait and decide if this item is truly something that will meet an unmet need in your life.

3. Make a Decision on Entertainment

How many streaming services are you subscribed to? Although you may think you are saving money, you can quickly rack up your monthly costs by subscribing to too many services. Rotate your services so you can still have access to your favorite shows and songs, but on a rotating basis.

4. Feed the Freezer

Food can be one of your most expensive monthly costs. Plan ahead by taking advantage of sales on things that can be frozen. Meat is one item that freezes well. Keeping your freezer full of these low-cost foods can make a big difference to your bottom line.

5. Go Generic for Everything

It’s true that more often than not, you are paying for the brand than the actual product. Going generic won’t impact anything but your wallet.

6. Treat Your Belongings Well

Invest in quality items that you love and treat well. Practice good habits like taking your car routinely for oil changes and staying on top of home upkeep. Broken cars and homeowner woes can be costly.

7. Test Out the Tried and True Envelope System

Just because your great grandmother may have done it, doesn’t mean it’s not still relevant. Make a monthly budget, and place each amount in a separate envelope. When it’s gone, it’s gone!

8. Consolidate Debt

If you have debt in a lot of places, you may want to consider consolidating your debt into one place with a lower interest rate.

For more advice on ways to make savings simple or how to start a savings account, reach out to us at Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

IRA FAQs: Find Your Answers

Retirement may seem far away or coming soon to you. Either way, you likely have some questions as many people do. Today, we will tackle some of the most common questions.

What is an IRA?

IRA stands for Individual Retirement Account. The purpose of it is to help people save for retirement through their paychecks. The two types of IRAs are Traditional and Roth.

Traditional: With a Traditional IRA, you are able to put pre-tax dollars away for retirement, which will later be taxed upon withdrawal.

Roth: With a Roth IRA, you pay taxes each year, but will not pay taxes at withdrawal.

How much can I contribute?

You may contribute less than 100 percent of your income but no more than $6,000 if you are under the age of 50 or $7,000 if you’re over the age of 50 for tax year 2019 and 2020.

Can I borrow money from my IRA?

The answer is yes and no. While the IRS does not want you to borrow money from the IRA, you are allowed to take money out and convert it to another retirement account. This must be done within 60 days of withdrawal from the IRA.

Who can have an IRA?

Any person who has earned income can have an IRA. Even if you already have a 401k through your employer, you can still contribute to your own.

Can I have both a Traditional IRA and a Roth IRA?

Yes, you can have both. However, you are still subject to the same overall contribution limit. It would need to be divided up over the two accounts.

Can I move my assets from my employer-sponsored plan to my IRA?

Yes, you can move your assets in this way. However, you cannot move your IRA assets into your employer’s plan.

Is there a penalty for withdrawing early?

If you choose to withdraw before the required age of 59 ½, your funds will be subject to a 10 percent tax penalty. However, there are some exceptions to this that you can learn more about here.

Your retirement is too important to not have all of your questions and concerns answered. Meet with us to learn more about your retirement options and how to get your finances set up for success.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Cybersecurity Check: How Secure Are Your Actions?

It’s 2020 and more than time to be certain your cybersecurity practices are up to date. Cybercriminals become more advanced and attuned to the different ways to penetrate vulnerabilities of those who aren’t up to date on security. These are the top actions you need to take. Can you say yes to any of these?

Are you cautious with the applications on your phone?

Sometimes, there’s a false sense of security when it comes to phone applications. Apps are used for about everything these days and too often users think they are safer than they are. You may have noticed that pop ups can still occur on these applications and can pose a security risk to you and the information held on your device. You may even click on the ad accidently while it takes you to a suspicious website.

Is your software up to date?

Yes, we realize that having to update your phone or computer can be a nuisance. It can be frustrating at times because it may change the layout of certain features on your phone. Yet, we would still recommend updating due to the protection it provides. It will help to patch vulnerabilities and fortify your wall of protection.

Are you aware of phishing scams?

How attuned are you to phishing scams? Phishing is when the cybercriminal acts like someone else in order to trick the victims. Be sure to: never open an email from someone you don’t know, click on unfamiliar links and always be suspicious when it comes to emails – even from friends that may send harmful links unknowingly.

Are your passwords updated periodically?

It’s frustrating to have to remember many different passwords and to constantly be updating them. But it is still less of a headache than it would be if you had your identity stolen or your data held for ransom. Never use the same password twice and update each password at least once a year.

Is your PII Personal?

PII stands for personal identification information. This includes your address, birthdate, birthplace and middle name. These are often listed on many people’s social media pages. Sometimes all it takes to have your identity stolen is your full name and birthdate. Be sure to remove this from your pages and to keep it private.

For more tips on how to stay ahead of the cybersecurity curve, contact us today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Money Responsibility 101: Family Edition

Financial responsibility starts in the home. If it’s not something you were taught as a child, it can be difficult to model it in the home as an adult. The good news is, it’s not too late to start! Here’s what you need to know to kick your household into gear.

Do It Together

The more, the merrier! Many parents feel anxious to talk about finances with the entire household. However, each member of the household will benefit from having an open conversation about finances. Set goals together and discuss why having goals and sticking to them are important. Review these goals as a family on a consistent basis. You should have your child replicate their own budget with their allowance, which we will cover down below!

Diction: It’s Important

Diction means word choice. How you talk about finances makes a big impact on how your children think about finances. It also impacts how you think about finances. It doesn’t have to be a big scary thing when it is discussed as commonplace and in a positive manner.

For example, instead of saying “we can’t afford that” or “we don’t have the budget for it” think of an alternative spin. Simply say something like, “That’s not in the budget for us right now.” It emphasizes that while you may have the money to spend on that item, it’s not planned for in the budget. You’re showing the importance of sticking to a budget and keeping your word. If it’s something that is really important to them, you can show them a way to include it in the budget for a later date.

Donations

Show your children the importance of giving back by leaving a portion of your family budget aside for donations. Discuss as a family what charity you would like to donate to. If possible, take your children there to show them where that money is going.

Utilize Allowance

Having an allowance is an oldie but a goodie! It’s never too early to teach your children about earning money. They will learn to work for money and how to budget it in a way that impacts them directly. You can show them that they can have a portion of their budget set aside for spending “fun” but when it’s gone, it’s gone.

Budgeting works! You and your family will see this to be true by creating and sticking to one together.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Make Your 2020 Savings Goals A Reality

The new year is full of hope and imagination for the future. It can be challenging for anyone to stick with these goals, especially financial ones. We’re happy to tell you that there is a way to make these goals a reality by sticking to these wise practices.

Be Realistic

In order to make your goals a reality, you should set realistic goals. While a beach house on Maui would definitely be an attractive prospect to most people, it’s not in the cards for everyone. Maybe something like this will be there for you someday, but first you want to master the baby steps. Think about goals within the next 1-5 years that you can see happening and are motivating.

Prioritize Goals

Not all your goals are likely to be reached in 2020. Prioritize the goals in the order that you think they can be accomplished first and that are also the most important to you.

Identify Roadblocks

Plan ahead for the things you think might go wrong or steer you off course. Is one of your savings goals to cut down on splurging but you find yourself repeatedly swinging through drive thrus and shopping online just because you have a free shipping subscription? Decide on alternatives to keep you from continuing with these habits. If there are events or emotional triggers that compel you to spend money, figure out another way to get relief. Go for a run, read a book or invite a friend over for a movie night.

Organize Accounts

Get familiar with the banking accounts available to you. Learn about how to use them to fit your lifestyle. Maybe you want each paycheck to have a percentage go straight to checking. Get this set up! Have you downloaded our mobile app yet? If not, consider doing so. It’s a great way to easily keep an eye on your everyday spending as well as check in on your growing savings account.

Celebrate Progress

Goals aren’t achieved overnight. You’ll be working hard to achieve your goals and you might experience some burnout. To keep this from happening, celebrate the strides you are making towards reaching your goals by having a visual that can remind you of your “why” and modestly celebrate each achievement in a way that’s fun for your household. If you have kids, get them in on the fun and teach them why following through on commitments is important and why celebrating mile markers is also important!

For more ways to follow through on your savings goals, reach out to us today!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Rebuild Your Emergency Fund

It finally happened – you had to spend your emergency fund. The good news is you had a fund, but the bad news is you spent it. Where do you go from here and how do you rebuild what you had? We wanted to offer some insight on ways you can begin to rebuild your emergency fund for the next rainy day.

Say ‘Bye’ To The Unnecessary

That gym membership and extra show subscription will have to be canceled for now. You can get by without, as saving for the next emergency is more important than having Netflix, Amazon Prime, Hulu and HBO all at once. Find the right balance though, as it’s still okay to treat yourself every once in a while with a small expense.

Put Other Goals On Hold

If you were hoping to renovate your home or go on a big vacation, you still can, but maybe just wait a little. All that savings you were adding to that fund could partially be transferred into your new emergency account. It’s important to stay prepared, as you never know when the next disaster might strike.

Get A Side Gig

Acquiring another job can be very beneficial for making money quick. Use your marketing skills to do some work for clients on your own or wait tables for a few months. This will help you get back on track before you know it. Tutor, give music lessons, babysit, pet sit, dog walk or design wedding invitations – whatever your skills or availability, you can find a side gig that works for you.

Start Saying ‘No’

You don’t have to turn down every opportunity, but try to say ‘no’ here and there while rebuilding your funds. Should you be spending money on eating out if you already did it once this week? No. Should you spend money on a new outfit or tickets if you already treated yourself this month? No. Be a little more stingy while saving again, as it’ll come in handy the faster you replenish your fund if something happens suddenly.

Sell Something

You have plenty of clothes and decor that are no longer of use to you. There are probably old electronics lying around as well that you don’t use anymore. See what you can sell online or bring to a thrift store for a couple of bucks. You’re decluttering and adding money to your account – we couldn’t be more proud of you!

Don’t let this minor setback discourage your financial independence. You were well-prepared by having your first emergency fund in place, so now it’s time to make the next one bigger and better than ever. If you’re looking for a great place to store that rainy day fund, our savings accounts are always available for you!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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