Tag Archives: retirement

The Ultimate Guide to a Roth IRA

If you’re looking to supplement your 401k offered by your employer or you currently do not have an option for a retirement savings account, a Roth IRA could be the savings option for you. Keep reading to learn the ins and outs of a Roth IRAs so you can decide if Roth IRA is the right option for you!

What is a Roth IRA?

Planning for retirement is super important. Whether you’re looking to get started or wanting to incorporate another savings option, a Roth IRA can be a fantastic option for retirement savings. What is a Roth IRA? It is important to understand when it comes to IRA accounts your options are Traditional or Roth. A Roth IRA is an individual retirement account where your money invested has already been taxed. A Traditional or Roth IRA are accounts you open on your own and are not affiliated with an employer.

The most unique feature of a Roth IRA is how the government taxes it. Unlike a traditional 401(k) or a Traditional IRA, your contributions going in is taxed at that time rather than your earnings when you choose to withdraw them.

Top Benefits of a Roth IRA

Tax-Free Income When You Retire

As we have mentioned, you are paying taxes upfront with a Roth IRA. There could be a chance you are taxed at a lower tax bracket during that time so when you are a retiree you will essentially be avoiding taxes as you take out those funds.

Great Option If You Don’t Have a 401(k)

If you don’t have a 401(k) through your employer, as long as you have earned income, you can contribute to a Roth IRA as your saving plan for retirement.

You Do Not Have to Take Money Out of a Roth IRA

With a 401(k) or a Traditional IRA, you are required to take out a certain amount once you reach age 72 – this is known as a required minimum distribution (RMD). With a Roth IRA you will not run into this as it has not RMDs, though when you die your account beneficiary may have to take them.

Roth IRA Contributions Can Be Withdrawn at Any Time

Since you’ve already paid taxes on your Roth IRA you can withdraw the funds you contributed at any time tax-free as long as you have had a Roth IRA for 5 years. Keep in mind if you withdraw earnings before age 59 ½, you may be penalized by the IRS.

You May Use a Roth IRA for Certain Life Expenses

With a Roth IRA you are able to use your contributions for a first-time home purchase. You can withdraw up to $10,000 ($20,000 for married couples) from your Roth IRA penalty free to pay for your first-home purchase. Another life expense you can use your Roth IRA contributions on is to pay for college or higher education for yourself, a child, or even a spouse. You will be able to withdraw penalty free though you will still owe income taxes if earnings are included.

There Are No Age Limits to a Roth IRA

With a Traditional IRA you can’t make contributions until age 72, with a Roth IRA there is no age limit for contributing. In 2023, with a Roth IRA you can only contribute $6,500 under the age of 50. The limit goes up to $7,500 once you are 50 or older.

If you’ve decided a Roth IRA is the option for you or have further questions, we would be happy to help! Contact us today to learn more about our retirement savings options to get you started!

Peoples Bank & Trust Co. 

Member FDIC 

Equal Housing Lender 

Retirement: What You Should Know

While retirement might sound lifetimes away, it sneaks up faster than you think. Many people wonder when to start saving for retirement, how to start, how much money they’ll need and more. We’ll answer those common retirement questions in this blog, so keep reading to find out.

When to Start

The time is now! If you are earning paychecks, start saving for retirement as soon as you can. The sooner the better, and the main reason for this is because your money will have more time to grow. Compounding makes a huge difference, and those 5 or 10 years of extra saving can turn into tens of thousands of dollars more than you would’ve had before.

How to Start

Don’t be intimidated – you can start small and work your way up to saving more. Something is better than nothing, so even putting a couple of hundred dollars into your retirement savings is a good start. The next step is to be consistent. Keep adding to the pile periodically and don’t tap into that money unless necessary.

How Much to Save

One general rule-of-thumb is save 10-15% of your income starting in your 20s. The amount you save depends on what you plan on doing once you’re retired. If you plan on traveling the world or buying a new sports car, your retirement fund will look different. It’s smart to have an idea of your retirement plans so you can adjust how much you save accordingly.

When to Retire

The answer to this is different for every person, too, depending on your retirement plans and how much you’ve already saved. The average retirement age is 62, but many people retire earlier or later in life. Some people also enjoy working and staying busy, so working doesn’t really come with an age limit. Knowing what age to retire comes with lots of planning and financial analysis, so be sure to talk to an advisor to know if you’re on track.

What if You’re Falling Short?

If you’re saving like crazy but still won’t meet your retirement goals, it’s time to consider some alternatives. The most effective change to make is delaying your retirement by just a few years. Not only will this add to your fund, but it takes off a few years you would’ve had to pay for to make it through retirement.

As time goes on, retirement gets closer even when it seems far off. If you haven’t started saving already, it’s time to start!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Online Safety Tips for Retirees

Online safety is a much bigger problem than most people realize. It’s estimated that seniors lose a total of about $30 billion every year because of online scams. We want to prevent that from happening, and we bet you do, too. We’ve put together some of the easiest ways for seniors to be safe online.

Be careful when making online purchases. Hackers and scammers can make their websites look pretty realistic and trustworthy on the outside. Here are some ways to know when not to enter your personal information.

Look for reviews if buying a product.
Make sure the website is secure.
If possible, only shop on websites you or others have used in the past.

Keep tabs on all of your accounts. Be sure not to let your accounts, on social media or elsewhere, go left unvisited for too long. The following points will help you know how to keep your personal accounts protected.

Use strong and secure passwords, as well as different passwords for each account.
Give a trusted family member or friend access to your accounts in case of emergency.

Think about what you’re posting. Just because your account is private doesn’t mean everything you post in there is safe from the world’s eyes. There are still ways for hackers to access your account or for others to copy and share your posts.

Don’t post pictures or information you wouldn’t want the public to know about.
If you need to share important but private information, consider doing so in person or over a phone call if possible.

Don’t trust all emails and messages. Although many email providers have an automatic spam filter, some make it to your inbox. When it comes to social media, messages from strangers can be dangerous.

Ignore the “You’re a winner!” or “Free prize!” messages.
Verify with friends before sending any money in case their account was hacked.
Don’t trust direct messages unless you can verify who the person is and why they’d be reaching out to you.

Be careful what you choose to download. Hackers will often create free downloadable documents that are actually viruses. Here are some steps to make sure your device doesn’t get hacked.

Know and trust your source before downloading anything.
Have a protective security software installed on your device.
Verify with a professional that it’s a trusted source.

Technology is a wonderful thing, but it definitely comes with dangers. Be sure to follow these practical online safety tips and continue protecting your personal information!

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

How to Meet Your Retirement Saving Goals

No matter your age, everyday you work is a step closer to retirement. When you think of driving off into the golden years, where are you headed? You likely have a picture in mind whether it be having a house in your dream location or an RV to explore the National Parks. Whatever that goal is, the steps to get there are going to be similar. Here’s some great money moves you can make in order to reach your retirement savings goals.

Start Where You Are

Many are under the impression that they should wait to save for retirement until they make a significant salary. You may be surprised at how much can be saved with a quality savings account on a small income. Even if you are only able to put $25 away each month, it is a great start. Most importantly, it gets you into the habit of saving. Once this habit is established, it will be easier for you to continue this as your salary and contribution increases.

Make Use of Every Employee Plan

If your employer offers matching contributions to your 401(k), take advantage of this. With most employers, the process is automated to come out of each paycheck. It takes the decision making out of the equation and can add up over the course of your career. If your employer does not offer this, consider contributing to an IRA on your own. It can either be a traditional or Roth.

You Must Stash

No, we aren’t talking about your mustache. What we mean is that you must stash away any extra income that you have. If you get extra income from a bonus or selling a valuable personal item, put that money into a savings account. It may not seem as glamorous as buying a new car or getting a new wardrobe, but your future self will thank you.

Let Your Kids Hear “No”

Many people try to give their kids every opportunity available. While this is great, it should not come at the expense of your retirement savings. Extracurricular activities can get very costly, especially if your children are in elite clubs. One way to cut down on these expenses while keeping them active is to limit them to one activity per season. They will learn to take advantage of every opportunity given to them as well as learn how to get involved in free activities like volunteering or after school clubs.

Saving for retirement can be tricky, so allow us to help your money grow with a CD or IRA from Peoples Bank & Trust.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Best Retirement Strategies for Your 20s

If you’re in your twenties and thinking about retirement, you are light-years away from your peers who wait until it’s too late. You’ll be so glad you started to take serious steps towards your golden years with these straightforward strategies.

1. Negotiate More

Your first job isn’t typically known to be a real money maker. You’ve been told to “pay your dues” and take the work for little pay. However, it is especially important for college graduates to negotiate for a higher salary. Whatever number you are thinking, add $5,000 to that salary. This is important because whatever salary you start with will follow you and be the basis for much of your career. You will of course get raises, but often, each new position you take is related to the salary you had prior. Start off high so you can begin investing greater now.

2. Automate Savings

It’s never easy to save and can be incredibly challenging if it’s saving for something that’s thirty years away. One way to take the struggle out of this is to have your savings automated. You can set a specific percentage to come directly out of each paycheck and into your savings account. It’s a painless way to force yourself to make wise decisions with your money.

3. Establish an Emergency Fund

While you’re saving for the golden years ahead, your plans can be easily derailed with a major financial emergency like a flooded basement or an unexpected medical procedure. Having an emergency fund in place will help to provide some cushion so you aren’t going into debt to cover these losses.

4. Start a Retirement Fund

Having a straightforward savings account for retirement is not the best way to make the most out of your money. You are going to want to invest in a retirement fund that’s built for growing your wealth over time. Most employers offer a matching 401(k) compensation plan as a part of the benefits. However, if yours does not, you can and should invest in your own Roth IRA.

5. Pay Off Debt

Debt of all kinds is crippling to millions of Americans at all ages. Those in their twenties average $20,000-$35,000 in debt. Debt should be paid off as soon as possible so you can begin investing in the things that matter most to you. You shouldn’t have to be constantly playing catch up, but instead, planting financial seeds for your future.

Continue to build your retirement funds with a CD or IRA from Peoples Bank & Trust!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Saving for Retirement: How Much Is Enough?

Over the years, we put away money for important events such as a baby, college tuition, a new car or house. Those tangible items make it worth the amount we set aside. However, retirement is a harder concept to grasp, as it is far off into the future. For this reason, we wanted to help shed some light on how much is actually enough when saving for retirement.

How much do I save at my age?
Trying to figure out how much to save at any age can be tough, especially when saving for other items. A good rule of thumb for your 20s is to save 10% of your pre-tax income. When you come to your 30s and begin saving, you’ll need to save 15-20%. If you start saving in your 40s, 30% will be the number to save. These numbers help show how saving young will help you in the long run. The longer you wait to save, the more you’ll have to put away which creates a tighter budget.

Why do I have to save that much?
Knowing how much you’ll need for retirement is tricky. There is no one answer to this question. Some people may need to save more if they live a more luxurious lifestyle. For those who are frugal, they may not need to save as much. Start by figuring out how many years you may be retired for. The average is anywhere from 20 to 30 years. Take your annual income and multiply it by 25. For example, take your $40,000 annual income, multiply it by 25 and you’ll get $1,000,000. This is what your retirement profile should look like to live a very comfortable life. However, not all people will reach this goal, but it’s important to know how much you can expect to have saved when retirement comes.

Where are you at financially?
It’s important to look at where you are at right now. What age are you and how much have you saved? Will you be getting a different job with a higher salary or will you plan on retiring early? Looking at your life and figuring out what your future holds will help you learn the amount you should be putting towards retirement. If you planned on retiring early, for example, you’ll have to save a lot more ahead of time.

Do you plan to invest?
Investing is a great way to make extra money on the side. Work with a trusted company or person, find what accounts you’d like to invest in and what way you’ll choose to invest. When you make the right investments, you’ll be able to save less for retirement.

Thinking this far into the future can be intimidating. While having all types of things to save for and bills due right now, it’s easy to forget about saving for retirement. Push yourself to start putting away the correct amount you need, so you’re not unprepared when the time for retirement comes near. We offer some amazing savings accounts and other options to grow your money. Contact us today to learn more about how our products can help you!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Saving For Retirement in Your 30’s

Congratulations, after your roaring twenties, you have made it to the thriving thirties. Unfortunately, with another candle added to the cake comes another responsibility. People in their thirties have a very high amount of expenses from a house payment to the cost of little ones, which is why we wanted to offer the following solutions to saving.

Automate Savings

You have hopefully already begun a savings account for the other financial goals in your life. If not, no worries! You’ve likely decided that this needs to be a priority now, or you wouldn’t be reading this blog. A simple way to start is to set up a percentage to be automatically put into a 401(k).

Many employers will automatically do this for you with each of your paychecks. If they don’t, this is something you will be able to set up on your own, so you don’t accidentally spend the money instead of investing in your future! If they already do this for you, consider increasing the amount even more.

Compound Interest

You’ve probably been saving for retirement since you became an adult, right? We would be very surprised if you did! A majority of Americans in their 20s and 30s have less than 10k saved towards retirement. If you’re late to the party, that’s okay! If you are thirty now, you still have until you are 65 to gain compound interest on your savings. Saving a little now will grow tremendously over the next thirty years.

Don’t Cash Out

You’ve probably been working for a while and have had a few different jobs. Even more likely, you will have more than one job within the next twenty years. A hard rule of thumb is to never cash out of your retirement policy when you switch employers. The money may be enticing, but it is crucial to roll it into your next retirement account to avoid the fees of withdrawing early. If you roll the money into a new account, it can be worth ten times the amount come retirement.

Keep Your Eye On That Golden Sunset

We understand you have many responsibilities you are managing daily. It can be difficult to picture retirement when you have so many other things or people fighting for your attention. However, retirement will come and the responsibilities will dissipate if you plan correctly. Try to not let the urgent things of today take priority over the important things of tomorrow. Instead of splurging on that brand new car, consider buying used and put extra money away for your golden years!

If you need help planning for your retirement, come see us at Peoples Bank & Trust for guidance! We have numerous solutions to help you save for the future.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

PEOPLES BANK & TRUST CO. ANNOUNCES CHANGE IN LEADERSHIP

Peoples Bank & Trust Co. announced David W. Thompson is retiring as bank President and CEO. He will be succeeded by Justin St. Pierre, who most recently served as President of Lincoln County Bancorp. St. Pierre officially took on his new duties Jan. 1, 2019. However, to ensure a seamless transition, Thompson will remain working for a brief time before retiring from the bank on March 29, 2019. Thompson will retain his positions as Chairman of the Board of Directors for Lincoln County Bancorp and Peoples Bank & Trust Co. Scott Hufty has been selected for the office of President of Lincoln County Bancorp having served as Senior Accountant of Lincoln County Bancorp for the last 14 years.

“Now is the time for me to step aside and allow the next generation of bankers to take the helm,” said Thompson. “I have for several years been mentoring and training a team of wonderful individuals who are more than capable of advancing community banking to the next levels. They will serve Peoples Bank & Trust and Lincoln County Bancorp with distinction.”

Thompson, who joined Peoples Bank & Trust in 1977, has been a driving force in transforming Peoples Bank & Trust as a community bank with long-term, sustainable success. Under Thompson’s leadership, Peoples Bank has grown to $480 million in assets and expanded to a seven-branch bank with an eighth location opening in Cottleville, MO in Fall of 2019.

In addition to his leadership roles in the bank, Thompson has also devoted countless hours to many community and banking organizations including serving as Past President and Director of Missouri Independent Banker Association, Past Regent President and Regent of the Paul W. Barrett, Jr. School of Banking, Independent Community Bankers of America Committee Member, a founding board member of Lincoln County Missouri Habitat for Humanity, Director of the Lincoln County Resource Board and Director of the Mercy Health Foundation Board. In addition, Thompson was presented with the Troy Chamber of Commerce Man of the Year Award in 2018, in acknowledgment of his contributions to his local community.

In reflecting on his career, Thompson is most proud of the friendships he has gained over the last 41 years. “The daily interaction with customers and those that I work with has developed into lifelong friendships,” he said. “My employees are my family and I will honestly miss seeing them every day.”

Thompson plans to keep busy in retirement as he hopes to continue his involvement with civic organizations as well as become involved in the mission field through his church. He also looks forward to traveling and playing golf with his wife, Peggy.

About Justin St. Pierre

As President of Lincoln County Bancorp, Justin St. Pierre oversaw the operations of five community banks in Missouri: Peoples Bank & Trust Co., Bank of Louisiana, Exchange Bank of Northeast Missouri, Peoples Bank of Altenburg and New Frontier Bank. In addition, St. Pierre managed a holding company staff which provides internal banking services to all the banks such as IT, audit, loan review, investments and marketing.

St. Pierre worked as a bank examiner for the Missouri Division of Finance in 1996, before coming to Peoples Bank & Trust in 1998 as a loan officer. He then transitioned to internal loan review within the bank holding company, Lincoln County Bancorp, before becoming President of the organization in 2014.

As President and CEO of Peoples Bank & Trust Co., St. Pierre will be leading over 130 employees into the future of community banking. “I am honored to be a part of this next chapter of Peoples Bank,” said St. Pierre. “We have a talented team of employees that are dedicated to their positions and it is an exciting time to be working at the bank.”

“I am confident Justin has the knowledge, skills and leadership needed to guide Peoples Bank into the future and continue our success as a community bank,” said David Thompson.

Justin St. Pierre, originally from Louisiana, MO, is a graduate of the University of Missouri (1994) and the Graduate School of Banking (2001). He currently sits on the Board of the Missouri Independent Bankers Association, serves as a member of the Independent Community Bankers of America Safety and Soundness Committee and is the Board Treasurer of the First Christian Church of Troy, MO. St. Pierre resides in Troy, MO, along with his wife Christy and two children: Katie and Griffin.

About Scott Hufty

Scott Hufty managed the financial and tax reporting obligations of all five banks under the holding company umbrella in his role as Senior Accountant for Lincoln County Bancorp. When he transitions into his new position of President, Hufty’s duties will shift into overseeing bank affairs at a macro level and ensuring the operational needs of each chartered bank are met.

“I have worked alongside Scott for over a decade now and I am confident he will continue to guide the banks of Lincoln County Bancorp to future success,” said St. Pierre.

Scott Hufty is a graduate of Lindenwood University (2004) and a licensed Certified Public Accountant (2007). He lives in his hometown of Silex, MO with his wife Kelly and two children: Connor and Claire.

About Peoples Bank & Trust Co.

Peoples Bank & Trust Co. is a full service, independent, community bank serving the Missouri market areas of Pike, Lincoln and St. Charles Counties through seven branch locations, with an eighth branch currently under construction and expected to open in Fall of 2019.

Since 1924, Peoples Bank & Trust continues to provide full service banking solutions while maintaining the highest level of customer service. For more information or to see a complete list of products and services, visit our website at www.pbtc.net and follow Peoples Bank & Trust Co. on Twitter and Facebook. Member FDIC.

About Lincoln County Bancorp

Lincoln County Bancorp is a $800 million bank holding company based out of Troy, MO. It is the parent company of five independent, community banks in Missouri: Peoples Bank & Trust Co., Bank of Louisiana, Exchange Bank of Northeast Missouri, Peoples Bank of Altenburg and New Frontier Bank.

Retirement Savings Made Easy

retirement

When you are in the early stage of your career, there’s usually lots of bills that add up. Things such as rent, student loans or car insurance can truly wipe out your bank account. We want to make sure you avoid excess financial stress, which is why we’re offering four simple strategies on how to start saving early for retirement.

Start small early on – The longer your money is invested, the more you can benefit from compounding. Compounding can turn small amounts of money into larger sums; it’s where you earn interest on the money you save and on the interest that money earns. It is best to start early, because the money you start to save will build up. Putting a small amount of money away can help establish a good savings habit — consistency is better than quantity early on!
Spend wisely – Create a budget for yourself so you can be better aware of your finances. At a younger age, you may think you have all of your spending under control but seeing a breakdown on paper will make it much clearer — or if you’re tech savvy download a budgeting app! Seeing a breakdown of your finances can help you see what to cut back on and if your spending matches your priorities. Doing this can make it much easier to save for retirement.
Create a debt repayment plan – Student loans or car loans, whatever it may be, take control of your debt! That may seem easier said than done, but once you create a feasible plan you can be more in control of your finances. Now, paying off your debt does not mean holding off saving for retirement. Take a look at your monthly income and order your debts by priority. Once a plan is set in place, set a small amount of money aside for the future.
Your employer-sponsored plan is no joke – Whether it’s a 401(k), 403(b) or 457, it is a really good idea to look into the retirement plans your employer offers. You could establish automated contributions from your paycheck each month or max out company match programs, where employers will provide a percentage or retirement contribution up to a certain amount. This is an easy strategy to get started with – your Human Resource manager can help!

So is today the day you start to save? Whether you save 1%, 6%, or more, it does not matter. What matters is you finding a spot in your budget to save your money. In the end, you will thank yourself. With these four simple strategies, we hope you find success with your budget and saving for retirement!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

What is a Roth IRA?

Top Benefits of a Roth IRA

When to Start

How to Start

How Much to Save

When to Retire

What if You’re Falling Short?

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