old-couple

Common Retirement Mistakes to Avoid

Whether you’ve barely thought about retirement or are nearing the typical retirement age and want to know how to go through the transition properly, learning about the process is always a good idea. Learn from the mistakes of others and avoid these common mistakes: 

Putting Off Retirement Savings 

Don’t keep putting it off – the time to start saving for retirement is now. The earlier you start, the less stressed the retirement process will be. A CD or IRA is a good place to start!

Not Having a Plan 

There are so many things that factor into how much money you’ll need to save, including when and where you’re retiring. Plan these things out in advance, coming up with an amount you’ll need to retire comfortably, then take action steps towards saving that much. 

Not Taking Advantage of Your Company’s 401(k) Employer Match 

If your employer offers a 401(k), make sure you maximize the amount you contribute and utilize the employer match if that’s an option. This is extremely important and the money matched can really add up. 

Waiting to Pay Off Debt 

Don’t wait until the last minute to pay off your debt – get rid of that as soon as you can so you don’t have to save for retirement at the same time as you’re paying off your student loans. Experts often say you should focus on paying off debt before you worry about saving for anything, including a new vehicle, a house and even retirement. 

Looking Past Potential Health Costs 

You never know what the future holds, and you may end up in a situation where you must pay for unexpected medical bills. While we hope this isn’t the case, it’s always better to be safe than sorry when planning for retirement. 

Changing Jobs Frequently 

There are benefits to sticking around at a certain company for an extended period. For some companies, when you’re there for a set period (usually five years), you become fully vested which means ownership of the funds or stock that your employer “matches.” Consider this as you navigate the job world and consider hopping around from one to another. 

While this is just the tip of the retirement iceberg, these are all common mistakes that can be easily avoided. Make sure you are planning for retirement ahead of time so you can save yourself the trouble that comes with going into the process blind! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

credit score

Improving Your Credit Score 101

Just by glancing at a single number, lenders can determine how financially responsible you are and decide whether to lend you money or not. Your credit score determines other important things like interest rates as well, which is why it’s so important to make sure your score is good. If you don’t have the greatest credit score, here are some basic ways you can improve it.  

Check Your Credit Score Frequently 

Just like you should be checking your checking and savings account balances frequently to make sure you’re on track, you should also take a look at your credit score every so often. If your score goes down, you might be able to pinpoint the reason and make adjustments as needed. 

Always Pay on Time 

One of the biggest things that affects your credit score is whether you pay your credit card bill on time. Late payments can take a hit to your score, so do everything in your power to make sure that’s not an issue. There’s usually a way to schedule automatic payments so you don’t even have to worry about forgetting to do it yourself. 

Keep Those Old Accounts Open 

If you have credit accounts open that you don’t use, it may seem obvious that you’d close them. You’re actually more favorable to lenders if you have an older credit age. As always, everyone’s situation is different so speak to a financial advisor if you’re unsure what to do with open and unused accounts. 

Keep Your Credit Utilization Percentage Low 

The general rule of thumb is to aim for 30% credit utilization or less. One way to do this is to pay your balances in full every month or at least keep your outstanding balance at 30% or less of your limit. You could consider asking for a credit limit increase which would help your credit utilization as long as your balance doesn’t increase at the same time. 

Monitor Your Credit Using a Service 

Credit monitoring services are very helpful and lots of them are even free. These services monitor the changes in your credit report over time and can help you figure out what will improve it. One of the best parts about credit monitoring services is that they can help prevent fraud and identity theft by alerting you, for example, when a new account has been opened in your name. 

Now that you know the basics, it’s time to kickstart your journey towards improving your credit score. If you don’t have a credit card yet, we’re here to help with that. Contact Peoples Bank & Trust to get started! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

picnic

Date Night on a Budget

It’s easy to skip out on date nights as life gets busier, and especially when money becomes tight. Making intentional time to spend with your partner each week or month is so important, and date night doesn’t always have to be extravagant. There are lots of sweet date ideas that cost little to nothing, so try some of these ideas on your next free night! 

Cheap Babysitting 

If you have kids and don’t want to spend money on a babysitter, there are some ways to get around that cost. Having family members or close friends nearby who are willing to watch your little ones for free is always nice, but that’s not an option for everyone. Think of another couple with children who you could ask to do a “babysitter swap” with each month. They watch your kids for an evening and you watch their kids another time, that way both couples get to go on a date without worrying about the childcare cost. 

Explore Nature 

One of the best parts about nature is that exploring it is usually free! If it’s nice out, you could go for a hike or find a pretty trail in your area to check out.  

Coffee Date 

Some coffee shops are a bit pricey, but it’s not bad if you stick with something simple like black coffee. Whether you want to try a coffee shop you’ve never been to or have a favorite, go-to spot, this is always a great idea for any time of the year.  

Picnic 

When the weather warms up a bit, you can’t go wrong with a romantic picnic. Pack a simple lunch or dinner with the food you have at home and find a nice picnic spot in your area. If you have some money to spare, you could mix it up by ordering a pizza or picking up a sub sandwich. 

Just Dessert 

Going out to dinner is usually what makes date night expensive, so what if you made the main course at home and went out for just dessert instead? This can be as simple as a drive-through ice cream cone or as fancy as cheesecake from a nice restaurant.  

Go On a Long Drive 

There’s nothing quite as peaceful as playing good music and going on a long drive. To add to the experience, visit Zillow.com to find some expensive houses in your area to check out. 

Games and Movie Night 

It’s time to dig out those old board games like Uno or Monopoly and have a fun game night. End the cozy night at home with a movie and some popcorn. 

We hope these ideas have sparked your interest and will help you stick to your budget. Now’s the time to go mark your calendar for a date night so you can spend time with the person you love! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

chart

Retirement Strategies for Your 20s

It may seem like a lifetime away, but retirement has a way of sneaking up on all of us. Something to remember when it comes to retirement is that the earlier you start saving, the better. Plus, you’re never too young to invest in your future. If you’re in your 20s, here are some helpful strategies you can implement to set yourself up for a successful retirement. 

Rid Yourself of Debt 

The first step in creating a retirement fund is to look at what you’re dealing with in terms of debt. If you can realistically pay off your student loan debt in less than 10 years, financial advisors often recommend that you focus on that before worrying as much about saving. 

401(k) Plans 

Investing money into an account specifically for retirement allows you to store up without paying taxes on gains until you reach retirement. If your employer offers a 401(k) plan, that’s a great place to start. 

Open an IRA 

On the same note, an IRA is a retirement account that has lower contribution limits than 401(k)s. This doesn’t have to go through your employer, either, so the amount you invest is more in your hands. If your company doesn’t provide a 401(k) match, the smartest route would be to max out on your IRA then put the remaining money into your 401(k). 

Create an Emergency Fund 

You may have a good amount of money stored in your savings account, but how much of that can be used in cases of emergency? Keep your life savings and your emergency fund accounts separate so you have a cushion if things go wrong. This will prevent you from needing to withdrawal from your retirement account or main savings account. Try to save three to six months worth of living expenses to be safe. 

Automate Your Savings 

If you have a hard time staying disciplined and remembering to contribute to your savings account each month, there’s a way to help with that. By making your savings automatic, you won’t even have to think about it since it will transfer for you. Set a savings goal for the year, figure out how much you’d need to save each month in order to make that happen and go from there! 

Keep an Eye on Your Account 

If you’re making saving for retirement a priority in your 20s, you’re in a good place already. Check back on your account frequently to see your savings grow and that will continue to motivate you throughout your 30s, 40s and beyond.  

Questions about retirement or unsure where to start? Our team is here to help! Contact Peoples Bank & Trust with any questions. 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

moving-boxes

How Much Does Moving Cost?

If one of your to-dos for 2022 is packing up your house and moving, you may be wondering how much that will end up costing you. While the amount varies greatly depending on how far, how much stuff you have and other factors, this blog will help you come up with an idea of what to expect. 

Average Moving Cost 

Local move: $1,250 

Long distance move: $4,890 

Factors Affecting the Cost 

The following factors are unique to your specific moving experience, meaning the price you pay varies: 

1. Fuel 

If you have a long-distance move, gas money is an expense to keep in mind. Not only do you have to drive any vehicles you have to the new home, but you also must pay a per-mile rate if you use a moving truck. 

2. Amount of Items 

The size of your moving truck will affect how much you pay for it, so if you have more things to move it will be more expensive. If you’re hiring a moving service, it’ll also take them longer to move the boxes out if there’s more stuff.  

3. Storage 

Sometimes moving gets a bit complicated and you need to store your belongings in a storage unit for a period of time. Storage rates vary as well depending on the place, how much you have to store and how long you store your items for. 

Cutting Costs 

Now that you know the general costs of moving, it’s time to discuss a few ways you can lower those costs to make your moving experience as cheap as possible: 

1. Reach Out for Help 

Ask your family members and friends to help with packing and moving if possible. There’s a good chance you’ll get plenty of help at no cost! 

2. De-Clutter and Sell Some Items 

One of the best ways to make the moving process both cheaper and easier is to go through your things as you pack and make a pile of items you no longer need. Take this extra stuff to a donation center and you’ll clear up lots of space in the moving truck. 

3. Find Free Moving Supplies 

Rather than going out to buy a bunch of boxes, seek out free supplies from grocery stores, office buildings, schools and other places that may have boxes to get rid of.

Do what you can to be prepared for the moving costs to come as well as to cut costs as much as possible. We wish you the best of luck on your new adventure this year and we hope the moving process goes smoothly! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

calculator

Make 2022 Your Best Financial Year Yet

If your new year’s resolution is to take control of your finances, you’re in the right place. We’re here to give you some ideas on how to make 2022 your best financial year yet. All it takes is some time, discipline and lots of motivation! 

Figure out your monthly income. 

The first step is to start from scratch, which means re-evaluating exactly how much money you have coming in each month. If you work a job that has a varying monthly income, estimate it to be on the lower end to be safe. 

Create a list of all monthly expenses. 

Write down every monthly expense you have, first starting with the expenses that are guaranteed such as rent/mortgage, car payments, insurance, etc. Then, estimate what you spend on varying expenses such as gas and food. 

Look back at your payment history. 

Now’s the time to look back at your banking history in previous months and find out what extra things you’ve been spending money on. This step is difficult because you begin to realize just how much you’re spending, but it’s worth it.  

Adjust your budget. 

Once you divide those items into categories, decide how much you want to spend from now on. Using a budgeting app is a great way to break your expenses down into specific categories and keep track of just how much you’re spending. Make it a goal to stick with your budget, tracking all of your expenses if necessary until it’s natural. 

Build up your emergency fund. 

You never know what 2022 is going to throw your way, so adding to your emergency fund is crucial. Set yourself up for a stress-free year by preparing for emergencies and unforeseen payments to come. If you don’t have an emergency fund quite yet, this is the year to start one! 

Do regular budget check-ins and adjust. 

Once you’ve completed the above steps, it’s important that you continue to do regular check-ins to make sure you’re following your budget. With time comes changes to your finances, so adjusting your budget every so often is also important.  

If you want to take your finances seriously this year, this is a great place to start. Once you begin incorporating the basics into your routine, you can start adding things like investments to the list so your finances can continue to grow. Questions? Feel free to contact Peoples Bank & Trust and we’d be happy to help! 

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

IRA

Q&A Regarding IRAs

IRAs can be confusing and even seem unnecessary to talk about for some, especially if retirement still seems lightyears away. Allow us to answer some of the most common questions people have about IRAs:

Q: Am I allowed to contribute to an IRA if I have a retirement plan through work?

A: Yes, as long as you meet the IRA’s eligibility requirements ‐ even if you participate in a 401(k) plan at work.

Q: What is the contribution limit?

A: The contribution limit is annual, so the amount you are allowed to contribute can change from year to year. For 2019, 2020 and 2021 it is $6,000 (or $7,000 if you’re age 50 or older). Your contribution limit might also change based on your income and filing status.

Q: What’s the difference between a Roth IRA and a Traditional IRA?

A: The main difference is that with a Roth IRA you contribute after‐tax dollars, so your money grows tax‐ free. A Traditional IRA, on the other hand, includes contributing pre‐tax dollars so withdrawals are taxed.

Q: How do I know if either a Roth or Traditional IRA is better suited for me?

A: If you expect to be in a higher tax bracket when you start taking withdrawals, a Roth IRA is best. If you expect to be in the same or lower tax bracket when you start taking withdrawals, a Traditional IRA is best. We recommend consulting with your tax advisor to determine which IRA option is the right choice for you.

Q: What are the penalties for withdrawals?

A: In most cases, withdrawing IRA contributions is penalty‐free, but if you withdraw earnings from an IRA, you may owe income tax and a 10% penalty.

Q: What is a spousal IRA?

A: People often wonder what they can do in a situation where there’s a working spouse and a non‐ working spouse. A spousal IRA allows the employed spouse to contribute to an IRA of the non‐working spouse. This can as much as double the family’s retirement savings.

Q: Can I contribute to an IRA if I only work part time?

A: Yes, it doesn’t matter if you’re a teenager working a summer job or have worked your whole life and are officially retired – you can still contribute to an IRA.

Q: What is a Roth conversion?

A: A Roth conversion allows you to withdraw from a 401(k) or a traditional IRA and convert it to a Roth IRA. This is smart for individuals who want their money to grow tax‐free.

We’ve only just scratched the surface of what there is to know about IRAs, but we’re always here to help if you have further questions. Contact us or visit our website to learn more about IRAs and how they can be beneficial to your financial future.

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

Bob Hall

BOB HALL HONORED FOR 48 YEARS OF SERVICE AS MEMBER OF PEOPLES BANK & TRUST CO. BOARD OF DIRECTORS

Bob Hall was honored for his 48 years of service on the Peoples Bank & Trust Co. Board of Directors at the company Christmas party on December 4th. He will be retiring from the Board of Directors at the end of 2021.

Hall joined the board in 1973, and during his tenure oversaw the expansion of Peoples Bank & Trust from Hawk Point into Troy as well as the addition of 10 other branches throughout Lincoln, Pike and St. Charles Counties.

“The total asset size of Peoples Bank & Trust was $10 million when I joined the board and today it is over $700 million,” said Hall. “I am thankful for my time with this great organization, and I look forward to seeing continued success from Peoples Bank.”

In addition to Hall’s service to Peoples Bank & Trust, he also served on the board of Lincoln County Bancorp and was Chairman of the Board of Exchange Bank of Northeast Missouri.

Outside of his role as director, Bob is the President of Hall Enterprises and can be found most days working at Hall Trailer Sales. He’s an active member of the Troy community having held the positions of President for the Kiwanis and Troy Chamber of Commerce as well as a served as an Alderman for the City of Troy and member of the Lincoln County R-3 School Board. Bob is an active member of the Troy Rotary Club and can be heard regularly on the local radio stations announcing the Troy Trojan Basketball games where he has lovingly been given the title of “Mr. Trojan Basketball.”

“Those of us that know Bob personally admire him not only for his business efforts, but also for his personal lifetime values as a devoted family man and member of this community” said Justin St. Pierre, President/CEO of Peoples Bank & Trust. “I wish Bob well and am confident the community will continue to benefit from his valued leadership.”

House

House Hunting? Here’s Our Advice

Maybe you’ve put your house on the market, are ready to move out of your apartment or are just seeing what options are out there. Whatever your reason for house hunting is, we’re here to help make it as stress‐free as possible with some helpful advice.

1. Get Pre-Approved So You Know Your Budget

Before you jump the gun and start falling in love with houses outside of your price range, it’s important to get pre‐approved for a mortgage so you know your budget. This will give you an idea of what a bank is willing to loan you.

2. Make a List of Your Must-Haves

There are some things that are non‐negotiable when it comes to finding the right house. Make a list of things you absolutely need such as a certain number of bedrooms, the size of your yard and the overall condition of the house. Do you want it to be move‐in ready or are you looking for a fixer‐upper? Do you prefer houses that are newer or are you open to older houses as well? These are all good questions to answer before the house hunt begins.

3. Narrow Down the Location & Explore the Area

This is even more necessary if you have kids or plan to during your time living in the new house. Where your house is located will determine where your kids go to school which is an important part of the decision process. The location also determines how far you’ll commute to work, the pool or parks you take your kids to, where you go to shop and much more.

You may love everything about a house, but you also must love the neighborhood and area you’d be living in. Take some time to explore, go on a walk around the neighborhood, visit some restaurants nearby, talk to potential neighbors to see if they enjoy the area, etc.

4. Visit Open Houses

Going to open houses is a great way to help you build the “must‐haves” list we discussed earlier. You may not have realized you wanted a feature in your house until you see it, or you might not like a feature that you originally thought you wanted. Exploring open houses whenever possible will help you figure out exactly what you’re looking for.

5. Don’t Decide Before Visiting

Online house hunting is very popular, and many people find their dream home before they ever step foot inside. Gather your options and have an open mind when looking around instead of having a favorite before you even visit.

We’ve got you covered when it comes to home loans, so reach out to our team to learn more. Happy
house hunting!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender

NMLS # 407724

Online Shopping

Stay Safe While Online Christmas Shopping

With the holidays right around the corner and online shopping more popular this year than ever before, it’s important to keep online safety measures in mind. To avoid issues like identity theft, hacking and financial fraud, check out these important online safety tips.

Always Ship to a Safe Place

Don’t be a victim of porch thieves who steal packages from doorsteps. Make sure someone is home when your package is delivered so it’s not sitting outside for too long. If you won’t be home over the expected delivery date, ship your items to your office or a family member’s house.

Make Sure the Retailer is Who They Say They Are

Some online retailers claim to be selling all the products you want for cheap, but in reality, they just want your credit card information. It’s never a great idea to buy from an unfamiliar retailer, but if you do, make sure you do your research beforehand. Check out customer reviews and consumer feedback first.

Is It Too Good to Be True?

There are always those exciting moments while online shopping when you think you found exactly what you need at the lowest price you’ve ever seen. If the deal seems way too good to be true, there’s a good chance it is. It’s better to spend a little more through a trusted retailer than to give your personal information to an unfamiliar site.

Beware of Public Wi-Fi

Using free public Wi‐Fi is a dangerous game when you’re online shopping. The public airwaves allow hackers to potentially intercept the data you’re sending online, such as your credit card info, name and address.

Don’t Overshare

Some customers have run into situations where a shopping website asks for personal information beyond what’s necessary, such as a social security number. No retailer will ever ask you for your SSN, so if you run into that problem, close the browser and find a more reliable website to purchase from.

Check Your Bank Account

Depending on how crazy you go with your online purchases this year, your bank or credit card statements might be a little longer than normal. Make sure you still go through and check for any fraudulent charges so that they don’t get lost in the other purchases.

Peoples Bank & Trust Co. wishes you the happiest of holidays and we hope your online shopping experience goes smoothly with the help of this information. Visit our website to learn more about the financial services we offer!

Peoples Bank & Trust Co.

Member FDIC

Equal Housing Lender