Author Archives: PBTC Blogger

Where Will You Be in 5 Years?

Financial Goals

Establishing your personal finances isn’t an overnight process, but deciding to start can be! Whether you want to save $1,000,000 for retirement, pay your child’s education, or become debt-free, choosing your next fiscal goal is the first step. At Peoples Bank & Trust we want to help you not only achieve your next financial aspiration but each and every one that follows! To help you start planning for the future we’ve compiled this strategic list to ensure you start your journey on the right foot. Here’s where to begin:

The first 2 Years:

  • Establish Financial Goals
  • Pay Yourself First
  • Create an Emergency Fund

During these years your primary priority is creating a solid foundation for your personal finances.  By deciding which goals mean the most to you, establishing monthly savings, and working those initiatives into a well-rounded emergency fund, you can be certain that whatever life throws at you, you and your finances will find a way to get through it.

Years 3 and 4:

  • Begin Your Debt Snowball
  • Build Your Credit History
  • Start Your Retirement Savings

The following two years will be creating the framework of your ongoing financial aspirations. These components will help ensure that your continued savings efforts are brought to fruition through retirement planning and debt elimination. Once you become debt free, the world is your oyster! Your final step to financial freedom is choosing where you want your journey to take you next.

The 5th Year:

  • Choose a Giving Strategy
  • Begin Investing
  • Determine Your Next Goal

Throughout the final year of this financial compilation, you should become focused on the future. Now that your debts are erased, your savings have been started, and you have put your money to work, it’s time to decide what you want to do with those funds. This is an extremely personal choice and should be made with the best intentions and available information. However, should you need assistance or further insight into possibilities, our dedicated team is here to help.

 
Over the next five years, we believe you can accomplish all of these endeavors and more. If you’re ready to begin your financial journey, stop by your nearest Peoples Bank & Trust branch today and speak with one of our personal bankers to get started. We’d love to help you achieve your personal and financial goals, one year at a time!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

How to Tuck Your Coins Away by St. Paddy’s Day

Savings

St. Patrick’s Day is always reminiscent of older times, filled with meaningful songs and dances, delightfully filling food, and timeless jokes or antics. Each year we celebrate the livelihood of the Emerald Isle, and the heritage of the Irish culture, through a wide variety of events and gatherings. To help your bank account prepare for the festivities, Peoples Bank & Trust offers these tips and tricks to help you save without missing out on the fun!

 

  • Avoid Dining Out ($150/month): The key aspect to achieving this savings is patience! If you can take the time to plan meals ahead of time, and shop only for what you need to make them, you can not only reduce your restaurant spending but your grocery spending as well!
  • Cut Cable ($75/month): With technology like smart TV’s, Fire Sticks, Apple TV, Sling and more, there are now endless options to view and stream your favorite shows without the high cost of cable. By bundling some of these internet based services you can reduce your expenses without limiting your entertainment options.
  • Pack Your Lunch ($100/month): Instead of eating out for ten meals throughout the month, designate two days you’ll bring your lunch from home and save the extra $10 day. You can increase your savings even more by utilizing leftovers from your home-cooked dinner the night before.
  • Carpool ($50/month): While commuting to work may allow you to live in a certain area, it does come at a cost. See if you can reduce that amount by finding fellow co-workers to share the ride in with. While $50 may seem small for a month, over the course of the year that easily becomes $600 or more that you can put toward other saving ventures.
  • Automate Your Savings ($100/month): The phrase, “Pay yourself first,” comes to mind every time we share this tip. Did you know that you can invest in your personal development by contributing your savings goals? Once all the immediate bills such as housing and utilities are paid, we recommend contributing to your savings before budgeting how much to spend in other areas for the month. This way you can make your ongoing financial wellness a priority before deciding on spending habits for the month-to-month purchases.

 

Before the festivities begin, Peoples Bank & Trust challenges you to put these strategic saving tactics into place. If you’re curious how to get started, or want to set up a designated savings account for your extra earnings, our dedicated team is here to help!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Most Common Money Problems Americans Face

Savings Tips

For most Americans, the development of personal money management is a lifetime learning process. Faced with firsthand lessons and ongoing expenses, it can be difficult to master the appropriate practices for many common financial obstacles. At Peoples Bank & Trust we want to help you obtain the best financial education possible, and offer these time-tested solutions to get you started.

 

  1. Creating a Budget

There are countless varieties of budgets, with different structures for all types of lifestyles. The real obstacle is finding the option that works best for you, and sticking to it! Nearly any budget format you choose can help you allocate and manage your money, however, it only works when it is consistent. Be sure that you check your balances at least twice a week to be safe. This will guarantee that you adhere to the amounts specified, keeping your expenses in line with what you’ve planned.

 

  1. Managing a Credit Score

The largest aspect of successfully managing your credit score is grasping the reins on where your number currently is. Sites such as annualcreditreport.com offer a federally authorized FREE report once per year from each of the three reporting bureaus. This gives you an all-encompassing view of your current credit standing, showcasing some key places for improvement. Many credit card companies now offer additional credit monitoring tools to help you keep an eye on your score month-to-month. We recommend checking it at least once every three months, to be sure you catch any errors or inquiries that may occur.

 

  1. Saving for Retirement

Due to the longevity of this venture, many people postpone the start of this savings process. However, in this situation, time is of the essence! An extra decade of saving could effectively double your money if you have an appropriate compounding interest rate.  We recommend starting your savings as early as possible, through either a company 401(k) or an independent IRA. The sooner you start, the longer you have for your funds to grow while you continue contributing to their ongoing prosperity.

 

  1. Paying off Student Loans

Debt is never something we want to hold onto. However, with over 44 million Americans borrowing funds to cover their continued education, the issue of student debt has become increasingly relevant. While we do suggest paying your loans off as quickly as possible, it is also important to ensure you take advantage of your time when starting to save for retirement. Every situation varies, and there is no blanket statement for every scenario. However, as a general rule of thumb, we recommend approaching your student loans with the snowball method, paying them off in order of least amount owed to greatest, while making the minimum contributions to your retirement savings.

 

Whether you’re ready to set-up a new savings account or create a new budget to better manage your debt, our team of professionals is here to help! Stop by your nearest branch, and speak with a qualified personal banker today.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

The Top Cyber Scams of 2017

Cybersecurity

Each year new technology begins to emerge and make an impact on the way we shop, pay, and manage our money. As mobile becomes more relevant, and Americans begin to understand last year’s cybercrime tactics, hackers have already begun using a new bag of tricks and techniques. To help keep both you and your personal information secure, Peoples Bank & Trust wants to share an updated overview of this year’s most common cyber tactics and how to avoid their tempting lures:

 

  1. Smishing

Smishing is similar to the more commonly referred phishing tactics, however, in these instances, the initiatives are completed through SMS or text messaging. By incorporating a more personal element, hackers have become more dangerous, claiming to be not-too-distant relatives traveling abroad or in other circumstances of need. Sometimes the phone numbers they use may show up as unknown, and other times they may look like they belong to the relative they are claiming to be. To safeguard against this, we suggest always calling the contact you have for your family member to confirm the proposed narrative and ensure you aren’t being scammed in an attempted hoax.

 

  1. IRS Tax Scams

It’s that time of the year, and while many Americans may be waiting until April to file their taxes, countless cyber criminals are already filing fraudulent returns on their behalf. In order to best protect your refund from curious criminals, we recommend filing your federal tax return as soon as you receive all of your filing information from employers and other income sources. While there are many relevant software services to help you file, we always suggest working with a tax professional to ensure you can take advantage of every deduction and new tax regulation.

 

  1. Ransomware

In this scenario, cybercriminals enter your computer through a phishing email or other disguised Trojan horse. Through this charade, they are then able to take control of your computer and change passwords or access codes until a ransom is paid. After any ransom is paid, the victims of this crime hope to get their hardware reset to their original passwords, but unfortunately, there are no guarantees. This crime can be extremely difficult due to the fact that once someone has gained access to your device, most often there is no sure-fire way to know they have removed that access unless you purchase a new device or network. To best safeguard against this, we suggest screening all emails and links before opening to be certain they are coming from a credible source.

 

  1. False Merchandise

Year after year, online and mobile shopping continues to eclipse the traditional brick and mortar retail revenues. The 2016 holiday season only continued this trend, pushing mobile shopping to propel its largest growth compared to prior years. Unfortunately, these increasing online revenues typically come tied to additional cyber crimes as well. There are many instances where spam sites are created using a misspelled version of a common retailer, enticing users to purchase goods that may not truly exist. In these circumstances, we always recommend searching for the retailer on Google, as national retailers typically have organic or paid listing at the top of the search results.

Continue to learn new ways to protect your information online with our monthly cyber security blog! We’ll show you all the in’s and out’s of a safe network, and personal security.

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

21 Thoughts You Have Before Retirement

Thoughts Before You Retire

The journey to retirement is an ongoing process, filled with a marathon of decisions. We at Peoples Bank and Trust Co. understand that each phase of your life holds different questions and concerns along with new and exciting adventures. If you’re curious what your path to retirement may look like, take a glance at these common retirement thoughts throughout each decade of savings:

Age 20-30

  1. Should I pay off student loans or save for retirement?
  2. My 401(k) should be plenty for now.
  3. How much money do I really need to retire?
  4. If I can save something toward retirement, I feel like I’m doing good.
  5. What are the differences between a Roth 401(k) and a Traditional 401(k)?

During this time the most important part of your retirement savings is getting started. Whether this is through your company’s 401(k) or an independent IRA, the sooner you save, the more funds you can accumulate through interest. While paying down your student loans are equally important, the one commodity they could limit for your retirement is time. Even by saving a small amount early, you can have the potential to save more in the long run.

Age 30-40

  1. Kids, cars, and a home – where do I find extra income to save for retirement?
  2. I got a bonus! Should I save it or spend it?
  3. Save it! My future self will thank me.
  4. When do I really want to retire?
  5. I can’t wait until I don’t have to work for a living anymore.

Throughout this decade you may see a lot of exciting milestones. Whether these come in the form of promotions, expanding families, or other new personal opportunities, they each will add to the tasks you’re currently juggling while saving for retirement. To help manage your life and your money, we recommend automating your savings to ensure that no matter what life has in store, your retirement savings remains consistent.

Age 40-50

  1. I’d love to still have money to spoil any future grandkids!
  2. I’ll open an IRA to supplement my 401(k).
  3. I’m going to see what I need to save to still reach my savings goal.
  4. My savings should have a great future if I stay on track!
  5. I don’t want to have to work unless I want to.

Now is when you want to begin fine-tuning your retirement to the specific details. If you would like to retire in a certain location, you’ll need to budget the anticipated cost of living in addition to any other annual spending. This is also the perfect time to determine the age you would like to retire. The average age for Americans to retire is 67, however, this can be lower than 50, or higher than 75, it all depends on your preferences and planning.

Age 50-60

  1. I can’t retire yet, I’d just be bored!
  2. I’ll retire after 60; I can still work part-time if I want to.
  3. Thanks younger me!
  4. I can do all the things I love during retirement! Gotta love that compound interest.
  5. I’m so glad I started saving when I did.

After you decide when and where you want to retire, the final specifications begin to unroll. When you start taking distributions, and how much you take, is completely up to your discretion, depending on the retirement account. Many Americans continue working part-time, in order to bring in additional income and give their savings several more years of compounding interest. This can be a valuable option, but it’s not for everyone.

6 Ways to Win with Your Budget

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 adviser, 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

5 Financially Savvy Ways to Use Your Tax Refund

Personal Finances

Getting your taxes done early not only takes one more thing off your to-do list but further allows you to start planning for the future. Working with your tax professional, determine how much your family may receive this year from a tax refund. No matter the amount, we recommend putting it towards your financial goals for the year. Here are some great strategies we’ve tried to get the best bang for our buck:

  1. Max out your 401(k) or Traditional IRA contributions. If you aren’t taking advantage of one of these two accounts, we highly suggest opening one soon! These tax-beneficial accounts help holders accumulate and grow their funds without the burden of tax at the time of deposit. Each account, however, is limited by how much you can contribute. By allocating funds into these account types it may not only help you save for retirement but also allow your money mature throughout the years, with no additional effort.
  2. Make an extra payment on your mortgage or student loan. Paying down your loan is always a great option when selecting financial goals. In the case of a mortgage, you earn more equity as you pay, while with student loans, you gain more momentum towards financial freedom. Instead of adding money to each monthly installment, we recommend creating one lump payment. By doing this you can you create a single but large decrease in your principal amount owed, drastically reducing your associated interest as well.
  3. Save for the 2017 holiday season. While holiday events, family gatherings, and memories are held dear, the burden of the season can pose potential problems for your personal finances. If you struggled saving last year, now is the perfect time to set aside funds for the holidays. Determine how much you need to pay for each aspect of your seasonal activities, and save as much as possible in a separate account from your tax refund. If additional funds are needed, automate your savings to transfer a specific dollar amount to this account each month.
  4. Pay off outstanding credit card debt. With one of the highest interest rates, credit cards are notorious for taking years to pay off. If you want to make a dent in your debt, we recommend tackling one card at a time.  Using your tax refund, see if you can eliminate smaller debts first. Then with the remaining funds, begin paying down each additional credit card. By paying off the card with the least amount of debt first, you can begin to snowball your way to financial freedom!
  5. Start saving for a vacation. Whether it’s a spring break, a summer adventure, or a fall festival, it’s never too early to start saving. Once you have determined a destination, then create a rough budget of the expected expense. Depending on your refund you may be able to pay for the whole trip outright, or you may need to couple the funds with some additional monthly savings. No matter how you choose to save, we recommend keeping your vacation funds in a separate deposit account so you’re not tempted to use them throughout the year.

If you still have questions on how to best use your tax refund, our personal bankers would love to help. At Peoples Bank & Trust, we can assist you in using all your savings options to help make the most of your money. Stop in and see us today!

 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

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