Road to Financial Success 2021

ROAD TO FINANCIAL SUCCESS

A S P E C I A L P U B L I C A T I O N O F T H E B O Z E M A N D A I LY C H R O N I C L E

2 / 2021 FINANCIAL SUCCESS

Table of Contents Why Invest in Gold and Silver?

2

A Successful Investor’s Checklist

3

Making Compound Interest Work for You

4

Entrepreneurship 101

6

Home buying in Bozeman

8

Why Bank with a Credit Union?

9

The Power of Planning Ahead

10

First Security Bank

11

Investor’s! Grab Ahold of the Reins in 2021!

12

Start the Day Right

13

Reverse Mortgage Myth vs Fact

14

From Taxes to Career Coaching

15

Layout by Marie Steiger

Why Invest in Gold and Silver?

By Dale Williams of Williams Gallery.

Gold and silver have long been a popular investment option among those looking to diversify their portfolios.

The appeal of physical assets in an increasingly digital investment era, coupled with the ease of liquidation and transaction privacy, is a driving factor behind gold and silver investments. Precious metals are an excellent hedge against inflation and maintain a strong position in times of political unrest.

Whether you are interested in depositing silver and gold into an IRA, holding gold and silver in your personal safe, or building up an asset to pass on to future generations, Williams Gallery can help. With 28 years of serving the Gallatin Valley and greater Montana, you can trust our industry experience and competitive edge to help you invest in the metals market. No transaction is too big or too small.

FINANCIAL SUCCESS 2021 / 3

A Successful Investor’s Checklist ™

Jack Monteith, CFP®, CPA, CERTIFIED FINANCIAL PLANNER and owner of Monteith Wealth, LLC

1. Understand the impact of income taxes on your investment decisions.

It is not about how much you earn; it is about how much you earn after income taxes. Understand the difference between ordinary income, short and long-term capital gains, tax-deferred income, and tax-free growth and income.

2. Start investing early in life. Albert Einstein once said that compound interest is the most powerful force in the universe, stating, “Compound interest is the eighth wonder of the world.” Example: Would you prefer to invest just 1 penny that is guaranteed to double in value every day for 30 days? Or rather, wait 30 days and receive $1 million? If you chose to invest 1 penny that doubled every day, at the end of 30 days, you would have $10.7 million instead of taking the $1 million dollars.

3. Understand what you are investing in. If Warren Buffet will not invest in a business he does not understand, then why would you put your hardearned money into an investment you do not understand?

4. Give yourself the best chance of not outlasting your money. Are you afraid of running out of money before running out of life? A typical mistake some retirees make is drawing too much from their investments early in their retirement years, resulting in financial stress later in life. Equally common is drawing too little in the early years, resulting in the lost opportunity of enjoying retirement while you are still healthy and active. A rule of thumb for an annual withdrawal rate is four percent of your investment accounts.

5. Have a disciplined investment plan and stick to it. There will be times when the stock market is dropping, and it seems that everyone is pulling out—do not be this person. You will hear people say, “I’ve lost so much already, I don’t want to lose anymore!” This thinking stems from both a lack of understanding as well as discipline. Some in the financial industry want you to believe you can time the market—an overwhelming amount of evidence suggests you cannot.

6. Ignore investment noise. Such as the doomsayers that claim, “the stock market will collapse tomorrow, get out now and buy gold or silver,” Or the person that claims to have made millions of dollars in the stock market last year, and for a small fee they will share their secret.

Ignore this noise and stick with your disciplined investment strategy!

7. Understand your risk exposure.

There are many different types of risk and understanding them can make you a better investor. Two common types of risk are risk of loss, and volatility risk. It is crucial for an investor to clearly understand their risk levels.

8. Diversify. By diversifying you may lower your overall risk of loss and the impact of loss; however, you cannot completely eliminate it.

9. Be aware of your true investment cost. Minimizing investing expenses may have a significant impact on your long-term success as an investor.

10. Work with good advisors that have a fiduciary duty to put your interests above theirs.

MONTEITH WEALTH, LLC TAX STRATEGIES | FINANCIAL PLANNING | GOALS-BASED INVESTMENT MANAGEMENT

www.MonteithWealth.com contact@MonteithWS.com 406-204-5374 5 W. Mendenhall St. Suite 202 Bozeman, MT 59715

Jack Monteith, CFP®, CPA Certified Financial Planner™

4 / 2021 FINANCIAL SUCCESS

Making Compound Interest Work for You

By Clinton Gerst

Compound interest is interest paid on interest already earned on a deposit or loan. Think of it as interest on interest. For those of you who struggle to pay off credit cards, compound interest is likely the culprit. Interest from the prior month is added to the principal you owe, and you’re being charged interest on interest. Before long that $200 pair of shoes can end up costing you $600 or more. That is why many financial advisors recommend eliminating credit card debt.

Saving money is a way to turn the tables and have compound interest work for you rather than against you. To gain an understanding of how powerful compound interest

can be, let’s look at an example of four hypothetical individuals: Karl, Joanne, Kylie, and Branson. We’ll assume an average savings interest rate of 5% over their lifetimes, monthly compounding of interest, and they all stop depositing additional funds at age 70.

Karl is leading a very busy life and feels he has always had too many near-term obligations to save money. Finally, at age 55, Karl starts saving $1000 per month regularly.

Joanne spent all her money as a kid and had many expenses during and right after college, which kept her from saving. But at age 25, Joanne starts saving $200 per month.

It's always the right time to start saving for your future.

Keep your money close to home when you open a Savings Account with Bank of Bozeman.

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Kylie and her dad walked down to her local community bank when she was 15 and opened a minor account for her, and she has deposited $150 per month ever since.

Branson had an account opened for him by his grandparents the month he was born. At age 15, Branson took over and made the monthly $100 deposits.

The lesson from the illustration is obvious: it’s never too late to start saving but starting early can make a huge difference in achieving financial security. And unlike the swings of the stock market, your bank account never goes down unless the money is withdrawn.

Why start saving for your future with a community bank?

Big banks and online banks seem convenient, but they typically charge more than your local bank.

Local community banks reinvest your money in the community.

Start saving with a local community bank; your future self will thank you!

About the Author: Clinton Gerst is the President of the Bank of Bozeman, an Independent Community Bank in Bozeman, Montana.

This article is provided for educational and informational purposes only, without any express or implied warranty of any kind, and should not be considered legal or financial advice. All expressions of opinion reflect the judgment of the author as of the date of writing and are subject to change. You should consult with an attorney or other professional to determine what may be best for your individual needs.

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Investment Growth

$2,000,000.00 $1,800,000.00

Branson $1,707,821.81

$1,600,000.00

$1,400,000.00 $1,200,000.00 Kylie $1,168,933.98

$1,000,000.00

Joanne $904,237.95

$800,000.00 $600,000.00

Karl $596,349.09

$400,000.00

$200,000.00 $0.00

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Homebuying in Bozeman: The Secret is Out!

By Ryan Hoover. Ryan is a member of the Daily Chronicle staff. He provides freelance articles for specialty publications.

The city of Bozeman is growing, and rapidly at that. With Bozeman ranking as the fastest-growing Micropolitan area in the United States according to Bozeman Real Estate Group, and seeing it’s population increase by 2.61% per year over the last decade, it’s no surprise that the secret of Bozeman’s natural beauty, recreational accessibility, word-class skiing, and laid-back lifestyle is out.

Plenty of families young and old are jumping on this opportunity.

This surge of new residents over the past decade has led Bozeman to expand into surrounding areas of Gallatin Valley, and left city planners with a full workload for the years ahead. With more people moving to Bozeman and looking to buy a home, this has led to increased competition in the housing market and growing average prices for single-family homes. The average price of a single-family home in Bozeman city limits grew 21.5% from August 2019 to August 2020, according to Gallatin Association of Realtors Market Watch.

ERA Landmark Real Estate Sales Associate Mikaela Durham believes

rapid growth and rising prices shouldn’t be viewed as signs of discouragement for families looking to buy in and around Bozeman, and that there is plenty you can do to increase your chances of finding that perfect home in Gallatin Valley. Durham stresses that firsttime buyers must have all finances and documentation in line when entering the market, and to prepare for quick transactions. “As a firsttime homebuyer in this market, it’s very important that you have your financing in place and ducks in a row. Sellers are looking for clean and quick transactions, and the more you clean up your financing and contingencies, the better the chances are that a seller will choose your offer. I think buyers need to be pretty aggressive when making offers,” she said. Anything you can do to get the edge should be done.

Durham believes that an experienced agent can help ease the burden off first-time home buyers in this unique market. “I also think it’s really important that buyers have good representation.

The speed that our market is moving right now requires an experienced and agile agent who is ready to compete for their buyers,” she said. With some homes in Gallatin Valley being taken off

the market the same day they’re listed, preparation is key, especially when considering 2020 had a historically low number of homes on the market, according to ERA Landmark.

ERA Landmark believes the lagging supply of homes is only part of the reason for the increased housing competition and prices.

“The increase in competition amongst buyers can be attributed to several different factors, including low supply and an increase of buyers from out of state looking to relocate to this area or to invest in our market,” remarked the real estate company. More people and fewer homes tend to mean higher prices.

When ERA Landmark was asked what they believe 2021 will bring for the Bozeman housing market,

they confirmed there are plenty of reasons for optimism. With many affordable housing projects on the docket, and interest rates anticipated to stay low for the first half of the year, ERA Landmark is hopeful.

First-time buyers can look towards purchasing condominiums or townhomes, whose prices have not increased at the same rate as single-family homes according to ERA Landmark. In addition, the number of listings seen so far in 2021 is encouraging. “In the first few weeks of January, we’ve seen a slight increase in listings and strong indicators that we will be able to meet our pent-up buyer demand.

We feel confident that Bozeman’s growth will continue. The lifestyle and community that fuels our love for Bozeman is still very vibrant and energetic,” states ERA Landmark.

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FINANCIAL SUCCESS 2021 / 7

W h y Ba n k w i t h a C r e d i t U n i o n ?

Kelly Fleiner Public Relations Director, Rocky Mountain Credit Union

When it comes to choosing a place to keep your money, one of the most important things to consider is which type of financial institution you’ll bank with: a credit union or a traditional bank. Whether you need standard checking, savings, and credit card accounts, or you’re seeking more complex features like investment opportunities and loans, choosing the right institution for you can make a huge difference in your finances in the long run. Whatever your circumstances, there are many benefits to choosing a credit union over a traditional bank.

The first benefit of banking with a credit union is the concept of membership. Unlike traditional banks, which are for-profit entities, credit unions are not-for-profit, and their shareholders are their members.

Making money off customers is not the primary goal.

At a credit union, the goal is to pass on any profits earned back to members through interest rates, lower costs, and other member benefits. In short, a credit union is a cooperative, not a corporation. You’ll be banking with peace of mind over decisions that are made for the good of all members, not for the profit of a few wealthy owners at the top.

Beyond a ethical ideology, there are also practical and tangible reasons to bank with a credit union over a traditional bank. Members at credit unions generally get lower rates on loans, pay fewer (and lower) fees, and earn higher APYs on savings products than bank customers do. For example, banks may charge anywhere from 14-28 percent interest on credit cards, whereas credit union interest rates tend to be around 7-15 percent

on average. Additionally, credit unions typically do not charge a penalty interest if there is a missed or delayed payment. At a credit union, checking, saving, CDs, and money market accounts will pay their customers a higher interest rate than a traditional bank. Many credit unions offer almost 40 percent more on their checking interest rates than the national average of a traditional bank.

Interest rates on personal, home, and vehicle loans tend to be lower with credit unions as well. Vehicle interest rates on average can be as much as 2-3 percent lower than banks.

And because their goals are memberdriven instead of profit-driven, credit unions look more at your ability to repay as a whole instead of simply basing your loan approval on your credit score and income.

And while the financial benefits of banking with a credit union are

undeniable, the thing that most people appreciate about credit unions is their superior customer service.

Credit unions tend to spend more time offering financial education as a service to their members, which can result in long-term financial benefits through informed decision-making.

They also tend to be more involved in the community they serve since most of their members are associated by location, type of employment, or another commonality, so dividends may reach your broader community, benefitting more than just your personal finances.

Put your money where it can best help you and the community you live in, by banking at your local credit union instead of a corporate bank.

Not only can you save more money on interest rates and fees, but you will also make more on your investments and invest in your community as well.

8 / 2021 FINANCIAL SUCCESS

Entrepreneurship 101: 3 Reasons Why You SHOULD Start A Business in 2021.

By Ryan Hoover. Ryan is a member of the Daily Chronicle staff. He provides freelance articles for specialty publications.

Author of the cherished Harry Potter series J.K. Rowling once said, “rock bottom became the solid foundation on which I rebuilt my life.” This past year, the United States economy hit rock bottom, seeing the largest GDP decrease in history (41.4%), and record high unemployment levels (14.7%), according to Edward Jones 2021 Outlook report. From March to September 2020, approximately 97,966 businesses on Yelp were reported as permanently closed, representing 60% of all Yelp-listed businesses shut down since March 1st, according to data released by Yelp in their Economic Impact Report.

That being said, the report

states the number of closed businesses on Yelp has decreased significantly since the start of pandemic, as restrictions have been lifted and health protocols put in place. With the economy forecasted to enter an expansionary cycle from greater vaccine distribution and lower coronavirus case counts, the rock bottom for which we’ve hit can be our solid foundation for 2021, too. Rowling’s words reflect the timeless expression that positive things seem to rise from dark times.

Ask the owners of Hyatt Hotels, Microsoft, and Airbnb, and they’ll tell you the same thing. Hyatt Hotel’s opened its first hotel during the 1957-1958 recession, the United States third post-war recession. In 1975, Microsoft was founded

the year after an oil embargo imposed on the United States

by OPEC. In 2008, Airbnb was founded during the Great Recession.

Good things do indeed come from dark times, as history has shown. With the roller-coaster markets that 2020 provided, many people around the globe have decided to postpone their dream of starting their own business and wait until markets recover to relatively normal levels. Here are three reasons why no postponing is needed and 2021 is the perfect year to start your own business.

(1) The economy is growing, with a large workforce available.

According to Edward Jones 2021 Outlook report, 2021 will be the start of a multi-

year, expansionary cycle. This means GDP will continue to grow, unemployment rates will continue to fall, and markets will begin to recover. The Federal Reserve released its Economic Projections which forecasted U.S. GDP to grow 4.2% in 2021, affirming Edward Jones projections of growth.

In addition, while only half the number of jobs since the start of the pandemic have been recovered, a large workforce remains available for hire. If you are looking to hire someone to help navigate the early stages of your business, many eager candidates await.

(2) E-commerce is taking flight.

Even before the pandemic began, Amazon had already defined itself as the go-to site for

FINANCIAL SUCCESS 2021 / 9 online ordering. As stores began to close from the pandemic and more people ordered items from the safety of their homes, online sales for E-commerce giants like Amazon, Target and Walmart soared, increasing just over 400% for Target and nearly 200% for Walmart from March 1st to April 15th, according to data released by the New York Times. The Times stated that E-commerce has spiked nearly 40% in the wake of the pandemic. With so many consumers turning to online marketplaces for everyday products now, the perfect opportunity for you to easily sell your skills or product is waiting.

The rise of E-commerce also generates lower costs for new business owners in the form of no rental costs and being able to work out of your home.

Businesses can operate from the garage and mail products to customers purchasing it through an online marketplace, or even their own website.

(3) What’s the gig? A new online market awaits.

With the rise of E-commerce coupled with businesses shifting their operations remotely and a growing gig-economy, this new online marketplace favors entrepreneurs. And that’s what you tell your friends you are, right? As businesses and institutions shift operations online, jobs like an online consultant or online teacher have become increasingly more common; companies begin to scour the internet for gig-workers or parents search for tutors they can no longer find in-person. In addition, the

gig-economy, defined as an economy of short-term contracts or freelance work (verses a permanent job), has been growing. From 2010 to 2020, the gig-economy in the United States grew 15%, according ADP Research Institute. Establishing yourself as a reliable gig-worker who can produce content or tutor children is, in essence, starting your own business.

The new online marketplace offers plenty of opportunity as we see a new method of doing business (from living room to living room). Looking for ideas?

Business News Daily has a great article titled 21 Great Small Business Ideas to Start in 2021, which you can read online.

“You may have to fight a battle more than once to win it,” said the former British Prime

Minister Margaret Thatcher.

While we hope to build from the darkness of 2020 like Rowling said, Mrs. Thatcher’s words should be a reminder that 2021 will bring more obstacles along with it. We are not in the clear yet, and as coronavirus cases increase at times throughout this year, the shutters of storefronts will close again.

But there is hope, and hope should always be harnessed for a greater good. There is hope we will weather this pandemic and come out of 2021 with a healthy population and the worst behind us. There is hope for our economy and thriving business scene too, and if starting your own business is a dream of yours, harnessing that hope in 2021 should be used for doing just that.

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The Power of Planning Ahead

By Danielle M. Shyne, Attorney/ Owner of Shyne Law Group, PLLC in Bozeman, MT Planning ahead and preparing for the unexpected are essential elements in any family’s financial well-being. Having an estate plan is among the most important things you can do for your loved ones. However, it is estimated that over 70% of Montanans die without a will, and even more, have failed to plan for incapacity.

Many individuals and families spend more time preparing for a vacation or birthday party than on their estate and incapacity planning.

In general, an estate plan is a collection of legal documents

that outline how you want your assets to be distributed when you pass away and designates who will manage and how to manage your financial and healthcare decisions if you are unable to do so for yourself during your lifetime.

Without a plan, the State of Montana determines who inherits your assets. Estate planning is generally accomplished through a will or trust. Providing gifts to charity, preventing family disputes – particularly in blended families, and business succession all require planning.

Failing to plan for incapacity can be overwhelming and intimidating for your family if you are no longer able to manage

your assets or healthcare due to illness or injury. Expensive, time-consuming court processes are often required after incapacity.

Planning for incapacity is accomplished through a Durable Power of Attorney for Finances and Property, a Durable Power of Attorney for Healthcare, a “HIPPA” authorization, and often a living will.

A comprehensive estate plan can help you feel more confident about the future and ensure you have planned for the unexpected.

It is often beneficial to have a team of financial, tax, and legal professionals help guide you through the process. It can never be too early to start planning, but it can be too late.

Each and every day until 2030, 10,000 baby boomers will turn 65. As many as six million people aged 65 and older live with a dementia-related illness, and Genworth estimates that 7 out of 10 people will require long term care in their lifetime. The average cost of traditional in-home health care services in Montana is over $5,000 per month. The cost of assisted living, a nursing home, or a memory care unit can range between $4,000 to almost $10,000 per month, depending on the level of care needed. Planning for long term care costs must be factored into your estate plan and accomplished early. Now is the time to plan ahead.

EStAtE & Long tErM cArE pLAnning Personalized service and one-on-one attention.

Estate planning | Wills | trusts | probate incapacity planning | Medicaid planning Serving the people and businesses of Southwest Montana Danielle M. Shyne Attorney at Law

Shyne Law Group, PLLC • (406) 581-5479 ShyneLawgroup.com

FINANCIAL SUCCESS 2021 / 11

Earning Extra Credit Tyler Wheeler, AVP & Marketing Director, First Security Bank

With a commitment to better money management, you can lift your credit score and save yourself a lot of money in the future. If your credit score is lower than you would like here are a couple steps you can take to boost your score: Find Your Credit Score for free from one of the three major credit bureaus. Logon to www.annualcreditreport.com or call 1-877-322-8228. A person’s credit score can range from 300 to 850, a score above 720 is considered great and a score below 620 is generally considered poor. Once you have your score you can start setting goals and map out a plan of how you will get there.

Pay Down Your Credit Cards with the highest interest rates and aim to get all balance below 50% of your available

credit. 33% of your credit score is based on how much you owe, paying down your debt is a fast way to raise your score.

Don’t Close Old Credit Cards. Part of your credit score is determined by how long you have had credit. The longer a card is open the higher your score will be, this can also help balance out newer lines of credit.

Do Not Open Unnecessary New Credit Cards. Stay away from one-time promotional discount cards. A new card can carry as much as 10% of your credit score, and will bring down the average age of your credit.

For more financial information, stop by any of First Security Bank’s 9 convenient locations in the Valley to speak with a trusted local banker. Success. Together

When you open a checking account at a bank, you expect great service, dependability, and value. What you don’t expect (or need) are strings attached to your account in order to avoid fees.

At First Security Bank, Totally Free Checking really is FREE! Free of minimum balances and hidden weekly, monthly, or annual fees.

OURBANK.com /// 406.585.3800 Unless specified otherwise, customer purchases checks. Other fees such as overdraft, nonsufficient funds (NSF) fee, continuous overdraft, etc. may apply.

See fee schedule for details.

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12 / 2021 FINANCIAL SUCCESS

Investor’s! Grab Ahold of the Reins in 2021!

By Ryan Hoover. Ryan is a member of the Daily Chronicle staff. He provides freelance articles for specialty publications.

2020 gave us markets like no other and seemed to re-define the word “fluctuate.” With the largest GDP decrease in U.S. history, countless number of businesses unable to stay afloat due to lockdowns, and the highest unemployment rate this country has ever seen, most markets in 2020 were affected in some way by the novel coronavirus. 2020 was the year of compromise; it was the year where we had to accept and work with this new normal. Part of the new normal included Stay-at-Home Order’s, social distancing, and a number of other restrictions that closed markets, cancelled flights and events, and left the world in a state of idleness. But as the year continued, and we began to learn what works well to slow transmission and developed a vaccine, a sliver hope began to form; a hope that maybe we can get back to the way things used to be.

This hope extends to the financial markets as well, with

many encouraging signs to spur confidence entering 2021, according to Edward Jones 2021 Outlook report. While there is still plenty of room for improvement, GDP is forecasted to grow more than 4% in 2021, higher than the average GDP growth over the last 40 years. Unemployment rates are continuing to decline to healthy levels, with half the jobs lost from shutdowns in March and April now recovered.

Returns have improved across a number of industries, including the financial industry, which has seen a 15% increase in returns since vaccine news first broke on November 9th, 2020. The authors of the report put it best: “The resiliency and vibrancy of the U.S. economy should show as the year progresses. With GDP entering the year below pre-pandemic levels, sufficient slack remains to fuel above-average growth as the recovery gains traction.” In essence, were getting there, so hang tight.

With many encouraging signs for markets heading into the new year, there is no better

time to review your investments and take advantage of the new expansionary cycle we are forecasted to see in 2021.

Local Edward Jones Financial Advisor Nathan Kirby believes in a disciplined approach when it comes to investing: “A few of the things I stress often in my office is that investors need to be disciplined in their approach, set financial goals, and automate their direct deposit from their bank.” Kirby believes that these are three easy steps everyone can take to regaining financial stability this year, but more importantly, working towards long-term financial goals. Markets fluctuate, and it’s important not to let that make you lose sight of long-term investment goals.

In Edward Jones 2021 Outlook report, they expand on some of these long-term goals you can set in 2021. One step you can take is by reviewing your investment diversification and making adjustments that align with market predictions for this year, such as growth prospects in the technology sector. The Report also recommends making financial resolutions

early, setting appropriate expectations for your investment profile, and updating your estate plan.

Nathan Kirby believes that this year will give you a chance to take control of your investments, and to look for opportunities to invest when available. “I would also stress that even small increases in savings can have a large impact over time, so review your contributions regularly and look for opportunities in your monthly budget to increase the amount you’re investing in your future, when your budget allows,” said Kirby.

McCormick Financial Advisor’s Owner Mike McCormick believes that putting a plan in place now, before the year is underway, is the best thing you can do to ensure investment success for 2021.

“After last year, it should be clear to everyone that no one is able to predict the future.

Just like the past, this year will bring about surprises, and being prepared to endure and take advantage of them is critical to your success and comfort during the ride,” he said.

FINANCIAL SUCCESS 2021 / 13

What Matters Most? Your Life.

By Ryan Hoover. Ryan is a member of the Daily Chronicle staff. He provides freelance articles for specialty publications.

If there’s one positive thing this pandemic has done for everyone, it’s been putting our lives in perspective and bringing forward the question of what matters most? With so many seismic changes to everyday life being caused by the novel coronavirus, people around the globe have been forced to reorganize and reprioritize.

Maybe for you it was calling a family member to end a fiveyear feud, or finally making the marriage proposal you’d been postponing; maybe it was spending more time volunteering for causes you are passionate about, or maybe, it was finally purchasing a life insurance plan.

This past year, one in four people said they bought life insurance for the first time because of the coronavirus pandemic, according to a survey by the insurance industry group Life Happens. In addition, Northwestern Mutual, the nation’s largest life insurer, reported a 15% increase in life insurance policies sold between April and September 2020 compared to the same period in 2019, according to the company.

Local State Farm Insurance Agent Dan Rust believes the time to buy life insurance is

now, while prices are low.

“First, if you do not have any life insurance, there has never been a better time to buy. Due to our ability to live longer, life insurance prices are low.

Consider your budget but look at both Term insurance and Permanent insurance. There are numerous options and each of you will be able to find one that fits your needs,” said Rust.

As Rust reminds us, choosing the type of life insurance you want is the first step. Term life insurance is typically the cheaper option that covers a specific period of time for you and your beneficiaries. It typically lasts anywhere from 10 to 30 years and covers you and your beneficiaries when you need it most – such as until the mortgage is paid off or your kids live on their own. Permanent life insurance covers your entire lifetime and is generally of greater cost. This type of policy includes a cash value accumulation feature that stores cash and can be borrowed from when needed. Both are great options depending on what you are looking for.

On top of the global pandemic being a driving force for life insurance sales, the price of life insurance has decreased over the last decade with new life expectancy research surfacing, also adding to sales. Rust explained, “because of actuary

tables and research showing we are living longer than ever before, the cost of life insurance has been driven down. There has never been a better time to buy than right now.”

With a global pandemic bringing many panicked buyers to purchase life insurance for the first time, and total industry sales estimated to have risen 7% in 2020 according to the LIRMA trade association, one may think that a decrease in prices for life insurance in 2020 seems improbable. But it’s true, with Deloitte Insights estimating an 8% decrease in life insurance

premiums for advanced markets in 2020. The life insurance world market saw an estimated 6% decrease in premiums for 2020.

If you’re in the market for life insurance, the time to buy is now, folks; and local insurance agents like Dan Rust are here to help with the process. Dan foresees continued success for the life insurance market heading into 2021: “Life insurance was purchased at an all-time high in 2020, and there is nothing to indicate that this phenomenon will not continue in 2021.”

14 / 2021 FINANCIAL SUCCESS

Reverse Mortgage Loan Facts of 2019 WHAT IS A REVERSE MORTGAGE LOAN? If you’re 62 and better, you can use a reverse mortgage loan to purchase a new home or turn your current home’s equity into cash. A reverse mortgage loan gives retirees the opportunity to potentially increase their purchase power or cash flow while eliminating monthly mortgage payments as long as you pay taxes and insurance, and maintain the home. Here are just a few reasons why you should consider a reverse mortgage.

WHAT A REVERSE MORTGAGE IS A Loan That Converts Equity to Cash for Many Different Uses

WHAT A REVERSE MORTGAGE IS NOT Not: A Sale Or Lifetime Commitment

Call Amber Today to Learn More Amber Docken Loan Officer NMLS #1236912 Office: 406-948-4459 amberd@fairwaymc.com 1811 W. Koch St. Bozeman, MT 59715

Copyright©2021 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify.

Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply.

By Amber Docken, Loan Officer at Fairway Independent Mortgage Corporation in Bozeman MT.

It is our job to give you the best education available with the most up-to-date facts so you can make a bright and educated decision. Our Reverse Mortgage Planners are well trained and very experienced with a variety of senior, real estate, and retirement issues so you can feel much more secure about making a decision with one of your most valuable assets: your home. Some of the most common myths that we hear are below.

Most, but not all, reverse mortgages today are federally insured through the Federal Housing Administration’s Home Equity Conversion Mortgage (HECM) Program. This blog talks about HECM loans only.

MYTH: I could lose my house and be forced to move.

FACT: As long as all loan terms are met, you cannot be forced to sell the home and move. Terms include living in the house as your primary residence, maintaining the home, and paying home expenses such as taxes and insurance.

Some circumstances will cause the loan to mature and the balance to become due and payable. Credit is subject to age, property and some limited debt qualifications. Program rates, fees, terms, and conditions are not available in all states and are subject to change.

MYTH: Your house must be debt-free to qualify for a reverse mortgage.

FACT: The amount of money you qualify for a reserve mortgage varies bases on the down payment you will need to bring to closing (ranges from 30 - 74%), which will be determined based on your age, or age of non-borrowing spouse, if applicable, current interest rates and the sales price (or appraised value, which is less) of the home you are buying. You must live in the house as your primary residence (living there 6+ months per year). Some income, property, and credit qualifications apply to ensure you can pay taxes and insurance and maintain the home.

MYTH: I will be giving you the deed to my own home, and I will not own it anymore.

FACT: The deed is still in your name so you can move whenever you want.

Most reverse mortgages are federally insured through the FHA. As long as you pay your property taxes, homeowners’ insurance and maintain your home you cannot be foreclosed on. We must honor this commitment for life or as long as you live in your home. However, you are allowed to change your mind and sell the house whenever you want if you wish to move to warmer climates, a right size home, or closer to your children whatever your choice may be. Only you will make the decision, not the lender or the government.

MYTH: A reverse mortgage loan should only be considered as a loan of last resort.

FACT: Many folks think a reverse mortgage can only be used when all other accounts and options are exhausted. While it is a great loan to add cash flow for a borrower 62 and better that has fallen on hard times (including, potentially foreclosure situations*), it should also be used earlier in retirement to avoid future problems by keeping the home safe with the retiree “aging in place.”

FINANCIAL SUCCESS 2021 / 15

F r o m Tax e s to Ca r e e r C oac h i n g a n d F i n a n c i a l E d u cat i o n , H R DC H e l p s S u p po rt o u r C o m m u n i t y !

HRDC is following CDC guidelines and wishes to keep all customers safe. Considering these restrictions, tax returns may be completed remotely-using secure sites and secure video meetings--or may be performed in person, in which case, everyone is required to wear a mask and maintain strict social distancing.

HRDC Financial Opportunity Coordinator Marc Graham says, “VITA is one of the most effective ways to provide financial opportunity to individuals and families in our community. Of people we served last year, the average refund was around $1,500. That can mean a lot to a household.”

Jenna Rhoads - Community Director at HRDC. HRDC has been helping file taxes since 2012. After last year’s 442 tax returns put close to $1 million in tax refunds back to the community, HRDC is ramping up for tax season again.

HRDC’s Volunteer Income Tax Assistance (VITA) is a free tax preparation service run by IRS certified volunteers, saving locals hundreds of dollars.

On Wednesday, February 8, the VITA season will begin in Belgrade, Big Sky, Bozeman, Livingston, and White Sulphur Springs. Individuals and households with an income of less than $57,000 are eligible.

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To qualify for 3% Cash Back, S.K.Y. member must perform at least 10-Monthly Debit Card transactions. and be enrolled in and login to online or mobile banking.

This year, HRDC has more financial opportunities to offer - regardless of income. All community members can enjoy the benefits of financial and career coaching. From planning for retirement, managing debt, or exploring career advancement, HRDC can help.

HRDC offers financial coaching to educate the community. “We can help people’s money go further, and when you pair that with the ability to earn more through education – we can help them change their future,” says HRDC Economic Development Director Dean Williamson.

HRDC is helping community members establish greater financial stability through education and skill building.

Through financial coaching, customers learn to consider spending habits and set longterm goals. Community members can receive financial education in workshops or oneon-one. Financial workshops are available in Bozeman and Livingston. Both services are free and open to all.

HRDC’s Bridges to Career Opportunities provides training and guidance to people looking to advance their career or enter a new field.

HRDC’s Bridge Program tailors its approach to each individual so they receive the skills and training they need to succeed. The program supports individuals looking to join the workforce or advance their career. The program pairs

classes on communication, leadership, and employment success with specific training and education.

Career coaching helps people build on their skills and find better jobs. Alongside career coaching, participants receive financial education. Paired together, this leads to a longterm ability to earn more money. Clifton-Short says, “When we combine these services together, the difference can be life-changing.”

HRDC’s career and financial coaching are open to all, no matter their income. As Marc Graham says, “It’s expensive to live here; even though they might have a “good job,” lots of people struggle with the cost of living. That is where we can help. We also support community members who are doing “fine” but want more for themselves and their family.”

For information about HRDC’s Bridges to Career Opportunities program or financial coaching, visit https:// thehrdc.org/how-we-help/ our-community/economicdevelopment/ or call 406-5874486.

For information about HRDC’s VITA service visit https://thehrdc.org/how-we-help/ our-community/tax-assistance/.

To schedule appointments in Bozeman, call 406-585-4848.

For appointments in Livingston, call 406-223-4479.