January 16, 2024 Current Publishing
January 16, 2024
A SPECIAL REPORT FROM
For Community First, financial literacy starts with building relationships PLUS: PROGRAMS AVAILABLE TO HELP STARTUPS, EXISTING BUSINESSES FINANCIAL PLANNING AND WELL-BEING IMPORTANCE OF ESTATE PLANS, TRUSTS AND WILLS
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January 16, 2024 Current Publishing
COMMERCIAL BANKING
Community First Bank of Indiana offers commercial and personal banking services, with branches in Fishers, Noblesville, Westfield, Indianapolis and Kokomo. (Photo courtesy Community First Bank)
Programs available to help startups, existing businesses By Leila Kheiry leila@youarecurrent.com If you have a great idea for a new business or have a successful business and want to expand, there are programs that can provide the capital needed to get that project off the ground. Scott Hammersley is the commercial loan group manager at Community First Bank of Indiana, and Jeff Magginnis heads up the bank’s Small Business Administration program. Both provided a few banking tips for entrepreneurs.
STARTING A NEW BUSINESS Magginnis said preparation is key to starting a new business. “Somebody comes up with an idea for a new business, they should do a business plan,” he said. “That's essentially putting on paper what your business is going to be about.” That plan doesn’t have to be a novel, he said, but should cover what services the Magginnis business will offer, who the customers or clients will be and why the business owner is qualified to provide those services. “Then it kind of goes from there into, OK, what's the market opportunity? What's the competition?” he said. “There’s a lot of available resources online about business
plans and what should go into them. Some are good. Some are bad. But it can give them a framework for what they should provide.” The plan also should cover revenue projections going out two to three years with information supporting those projections. Once a lender goes through all the relevant information and determines that it wants to provide a loan for a proposed startup, Magginnis said that’s generally when the SBA process begins. Startups often lack collateral because, as the name implies, they are just starting up. “The SBA will come in and give us a guarantee up to a certain percentage of the loan depending on what program we use and that way we can mitigate our risk,” he said. That guarantee can be 75 percent of the loan or higher.
EXPANDING AN EXISTING BUSINESS A business owner who has been in operation for a while and wants to expand operations or maybe buy new equipment also can be eligible for SBA loans, but it’s a slightly different process. Hammersley said his team works with business owners to create loan packages that work for them. They first look at three years of business and personal tax
Hammersley
returns and other finances. “That's where we come in and really take the reins with them and guide them on what would be needed for a loan,” he said, adding that it could not involve an SBA guarantee.
LINE OF CREDIT A line of credit essentially is a loan. Magginnis said lines of credit especially are important to manage cash-flow timing differences. Often there’s a gap between when a service is provided to a customer and when the customer has to pay for that service, he said. In the meantime, the business still has expenses, such as rent or payroll. “A line of credit bridges that gap,” he said. “That’s the whole idea behind it. ‘I need to spend money today, but I'm not going to get the money for what I'm doing for this customer until tomorrow.’” Lines of credit can be used for other expenses, he said, but the cash-flow timing is the primary benefit. The method for setting one up is the same as any other loan request, Hammersley said. “Whether it's equipment, real estate or line of credit, you go through all the same processes as far as document collection and things like that,” he said. “So the line of credit is easy to establish, but we do look at the same criteria.” And, he said, lines of credit also can be backed by the SBA. For more, visit cfbindiana.com.
January 16, 2024 Current Publishing
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January 16, 2024 Current Publishing
Financial planning and well-being
When it comes to his banking, Rondell is a Farmer. Rondell Sims Customer Since 2022
Advertorial The current cost of living crisis, against a backdrop of bleak economic predictions, is a significant cause for concern for millions of people. Living standards have fallen at the steepest rates in 60 years; household incomes are expected to drop by 4.3% in 20222023; and people are being forced to reduce their spending. With economic predictions over the next couple of years also looking grim, it’s easy to see why people feel powerless and frustrated. Research from PWC found that 58% of people cite financial issues as their top cause of stress, while Aviva found that 38% of Generation X were kept up at night by their finances. A shocking 86% of people say that their mental health issues are made worse by thinking about money. So, what can be done?
Could financial planning hold the answer?
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Believe it or not, financial planning not only helps us achieve our financial goals but can also improve our mental and emotional well-being. One of the key benefits of financial planning is that it helps us to feel more in control of our finances. When we have a clear plan in place, we can better manage our money and make informed decisions about how to spend and save it. This can reduce stress and anxiety around money, which can have a positive impact on our mental health. Another benefit of financial planning is that it can help us to achieve financial momentum. Whether it’s saving for a down payment on a house, building an emergency fund, or planning for retirement, having a financial plan in place can help us to make progress toward our goals. This sense of accomplishment can boost our confidence and self-esteem, which are important for our overall well-being. In addition to the mental and emotional benefits of financial planning, it can also have a positive impact on our physical health. Financial stress can cause a range of physical symptoms, such as headaches, stomach problems and high blood pressure. By reducing financial stress through effective financial planning, we can improve our physical health and overall well-being, too.
We’ve seen this for ourselves As financial advisers, we get to witness firsthand the positive effects in seeing people take control of their finances. The stats also back this up. Royal London conducted research on the links between receiving financial advice and well-being. They found that those who had received financial advice: • Felt more in control of their finances • Felt more financially secure and stable • Felt better prepared to cope with shocks • Worried less about their finances for retirement • Felt less anxious about their household finances • Felt more confident about the future Crucially, they also found that these benefits were greater if people worked with their financial adviser regularly over a long period of time. This is because of the close, trusting relationship that develops when working with a financial adviser, meaning people feel reassured that their money is being looked after properly.
Financial advice can help everyone Society is slowly but surely breaking down the taboos around mental health and many areas of life, yet the links between finances and wellbeing remain in the shadows. People avoid tackling their finances for many reasons. Some feel that it’s all just too confusing, while others feel it’s too deeply personal. But it doesn’t have to be that way. Ignoring the issue might be easier but can leave you with a distinct feeling that your finances are like a sitting duck, open to attack from economic shocks. In contrast, being proactive and having a financial plan in place will mean that no matter what comes your way, you will feel safe in the knowledge that you have a game plan for dealing with it. Our financial health and personal well-being are tightly bound together, with money worries often spilling over into other areas of our lives. It’s therefore well worth remembering the benefits ongoing financial planning can bring. So, if you’re thinking about putting off coming to that planning review, think again! It may bring you more peace of mind than you realize.
January 16, 2024 Current Publishing
FINDING DIRECTION FOR YOUR FINANCES SERVICES: PERSONAL FINANCE
Helping you take control of your finances begins with things such as budgeting, savings, exploring the various types of investments available, and creating plans for retirement.
FINANCIAL PLANNING
It starts with an evaluation of your net worth and understanding the financial goals you have for your future. As a comprehensive and individualized approach, financial planning helps you create strategies for achieving your dreams.
RETIREMENT PLANNING
Depending upon your current place of employment and future financial goals, there are a variety of retirement and investment plans available. Understanding the pros and cons of each plan is important in making an informed decision on which is the best fit for you.
ESTATE PLANNING
Simply put, estate planning is figuring out what will happen to your assets upon your death. This includes items such as creating a trust, establishing a durable power of attorney, and deciding annual gifting amounts.
EMPLOYER RETIREMENT PLANS
Offered through an employer, a plan such as a 401(k) or SIMPLE IRA may provide a good retirement option for employees. Employers often match a certain amount, making this retirement option a great benefit for an employee’s future.
PORTFOLIO MANAGEMENT
Keeping an eye on how your investments are performing is important in achieving your financial goals. Choose between active or passive styles of management, depending upon the level of risk and reward you feel comfortable with.
Rockford V. Stites, President Investment Advisor Representative 412 S. Maple Street, Suite 200, Fortville, IN 46040 Cell: 765.744.1908 • Office: 317.482.3784 www.RockfordAdvisor.com Advisory services are offered through Rockford Group, LLC, an Investment Advisor in the State of Indiana. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.
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January 16, 2024 Current Publishing
INVESTMENTS
Level up your finances in 2024: Five tips for success Advertorial by Nate Hasto For many, the New Year presents an opportunity for a fresh start. This may entail getting fitter, spending more intentional time with loved ones, or even targeting that raise or promotion at work. If you are looking to your finances as an area to level up in the New Year, look no further. Here are the top five financial tips to add to that New Years resolution list! 1. Prioritize your financial health: This can look different for each of us. It may include improving your credit score, increasing, or starting an emergency fund, or simply getting a grasp of where all the money goes when your paycheck hits the bank account. Whatever your flavor, each of these foundational factors can help create a more stable and sturdy financial footing. 2. Taking an active role in your Risk Management plan: In the many years I’ve spent in financial services, I’ve yet to meet a person who loves thinking or shopping for their own insurance. It can be an easier endeavor to sit with a professional. Whether you are reviewing your current workplace benefits
or shopping for your own personal life or disability insurance, having a custom-fit plan can make a major impact on your peace of mind and quality of life when it’s needed most. 3. Optimize your Retirement Savings: One of the easiest ways to do this is to review your employer’s retirement plan. This may be a 401k, SIMPLE IRA, or 403b, to name a few. Understanding how your plan works, if and how your employer may match your contributions, and when those matched dollars become yours officially, can help move the needle quickly when looking to save more for your future. Reading your plan summary, speaking with your HR or benefits representative at work or talking with a financial professional who specializes in these kinds of plans can all be a way to better understand and leverage your workplace plan to your advantage. 4. Start saving for Education: The 529 plan is not a new development in the college savings space, but it has experienced some changes over the past year. The SECURE Act 2.0 created new avenues for the utilization of 529 funds by opening the door to Roth IRA rollovers. This is certainly not a reason for most
to consider overfunding a 529 plan, but it does create significantly more flexibility for funds to be used productively. Leveraging these kinds of plans for their tax-deferred growth, potential tax credits for contributions, and tax-free withdrawals for education could be the right mix you’ve been looking for. 5. Begin or refresh your financial goals with your spouse or partner: There are few things that can determine your ability to achieve your financial goals more than being on the same page with your partner. Create a shared vision of where the two of you want to be. This can become the foundation for all your future progress. If you find yourself struggling to get on the same page, engaging a third party like a financial advisor can help to moderate and guide you to a mutually beneficial destination. As we welcome the New Year, I hope these items can help you attain the goals you set out to accomplish! Nate Hasto, Community First Investment Group LPL Financial Advisor Certified Plan Fiduciary Advisor® Phone: 317-399-7504
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Community First Bank and Community First Investment Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Community First Investment Group and may also be employees of Community First Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Community First Bank or Community First Investment Group. Securities and insurance offered through LPL or its affiliates are: Not FDIC Insured by FDIC or any Other Government Agency
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January 16, 2024 Current Publishing
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(765) 456-4343 • www.cfigadvisors.com Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Community First Bank and Community First Investment Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Community First Investment Group, and may also be employees of Community First Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Community First Bank or Community First Investment Group. Securities and insurance offered through LPL or its affiliates are: Not FDIC Insured by FDIC or any Other Government Agency Not Bank Guaranteed Not Bank Deposits or Obligations May Lose Value
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January 16, 2024 Current Publishing
ESTATES
Importance of estate plans, trusts and wills By Mark Ambrogi
“But any asset that doesn’t transfer to someone automatically by virtue of being a named beneficiary or a co-owner on an There are numerous reasons why account, if the cumulative of those assets estate plans, trusts and wills are of vital that don’t automatically transfer exceeds importance. $100,000, the person has to hire “An estate plan may or may not a lawyer to get that person desinclude a trust component but ignated as the executor,” Adams would include a general power of said. “There is a litany of obligations attorney, a health care power of through the court one would have attorney and a living will,” said Jeff to undertake in connection with colAdams, an attorney with Indianaplecting all the assets, paying all the olis-based Cohen Garelic & Glazier expenses and paying the final tax.” Adams and a Noblesville resident. “Those Adams said it is generally more documents are important because in the expensive than if you plan to transfer asevent something happens to you short of sets outside of the probate process. dying where you are not able to manage “One of the primary ways that process is your affairs without those documents in avoided is using a trust,” he said. place, it can be difficult for someone to Adams said he prefers to draft separate care for you or have the authority to make trusts for each spouse. Some lawyers set those types of decisions.” up joint trusts, but Adams said they are Sometimes, family members must go to more involved to administer. court to have themselves appointed as a Trusts also are set up to hold assets for legal decision-maker or guardian, dependyoung children. ing on circumstances. “The bank or trust company, a friend or “So, part of the planning is not just for family member will hold the assets for the death but for life,” Adams said. “An estate benefit of the kids, so if they need money plan is a little more encompassing than just for a car when they turn 16 or need money the disposition of your assets.” for college, then the trustee can pay the Adams said having a will is important expense to school or car dealership,” Adbecause if a person dies without a will, the ams said. state of Indiana decides how their assets Adams said it may not be an outright disare transferred. tribution of everything they are going to get “There is a statutory hierarchy,” he said. until they get to be older. He said people “If you are married, half goes to your spouse can designate ages in the document. and half is divided by children. If you have Another common reason is for estate young children, or sometimes even older tax planning to ensure spouses utilize their children, they want assets transferred to estate tax exemptions. the surviving spouse to plan for the kids.” “When you die, if your assets are over Adams said those wills usually are done the estate tax exemption amount, then simultaneously, so each spouse will have a the estate or trust will be subject to a will but will say the same thing in reverse. federal estate tax, which could be up to “Without a will, you need to understand 50 percent,” Adams said. “When I was in your assets may be transferred contrary law school, that exemption was only about to what your desires might otherwise be,” $600,000. The estate tax exemption has Adams said. gone up and up over the years. Today it’s With children under 18, a will is the opover $12 million. When you die, you can give portunity to designate guardians, Adams as much to a spouse estate tax-free as you said. want. But on the death of your wife, the Adams said most people decide to do surviving spouse in this example, she would trust planning. Adams said there are three only have her exemption to use and not also primary reasons for a trust. One of those yours because you didn’t use yours when reasons is probate avoidance. you transferred your assets. If you do it Adams said life insurance, IRAs and right and you use both exemptions, you will 401Ks typically have named beneficiaries. have $24 million in exemptions.” mark@youarecurrent.com
January 16, 2024 Current Publishing
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PERSONAL BANKING
For Community First, financial literacy starts startswith withbuilding buildingrelationships relationship Stacy Chemelewski conducts a meeting in her office. (Photo by Adam Seif)
By Ann Marie Shambaugh annmarie@youarecurrent.com The team members at Community First Bank of Indiana are well versed in financial literacy, but they know that’s not necessarily true of all their customers. So, the bank and its employees place top priority on building relationships with clients, taking time to learn their unique circumstances, building a personalized roadmap to their goals and helping them navigate the financial world in a way that makes sense, according to Stacy Chemelewski, manager of the bank’s Meridian North Banking Center. “Being as small as we are, we genuinely have that opportunity to sit down and have that full dialogue with the client to be able to dissect and break down the things that they really need, and then come back with an opportunity to help them with that,” Chemelewski said. “In some institutions, if you don’t fit in the box, then they don’t have any other options for you. That’s not how we are.” Sometimes, the conversations don’t even cover finances, Chemelewski said, as the two sides simply take a bit of time to get to know each other or share updates over a cup of coffee. That’s what it takes to build enough trust to have conversations that aren’t always easy. Customers can be embarrassed to admit making mistakes or poor choices or acknowledge there is much about finances they don’t know. “You get those questions going and they start to open up and they realize, ‘Wow, this person really cares, and they
want to help me,’ which is a little uncommon in the world that we live in today,” said Chemelewski, a Westfield resident and Noblesville High School graduate. Chemelewski said Community First Bank aims to begin building financial literacy early, including in the classroom. Bank employees will often visit schools to speak with students of all ages – but primarily high schoolers – about the basics of personal finance. “If you start them young, the habits stay,” Chemelewski said. “They usually continue to do that for the rest of their life, because they’ve had some kind of foundation.” The conversations can be a bit tougher with those a little further down the path of life, especially if good financial habits never took root. Chemelewski said she and her team meet with customers of all ages and financial situations and aim to make each one feel comfortable, no matter what they’re facing. Rising inflation has complicated the financial picture for many families in recent years, Chemelewski said. “What we’re living in with inflation is pretty scary out there,” she said. “People are living off of credit cards, and credit card debt is higher than it’s been in a very, very, very long time, to the point where it could be crippling for some folks if we are not becoming that trusted advisor for them.” That’s one reason Chemelewski said she believes it’s important for customers to be connected with a team of bankers they can turn to for advice. “We are that bank that tries to build that relationship in a way that they don’t want to go anywhere else, because we
have laid that foundation for them and helped them grow and get to that end result,” she said. Kokomo-based Community First Bank of Indiana has three branches in Kokomo, two in Westfield, one in Noblesville, one in Indianapolis and a loan production office in Fishers that is set to become a full-service branch in February. Learn more at cfbindiana.com.
BACK TO THE BASICS The world of banking can feel intimidating to many people unfamiliar with it, which subsequently keeps them from seeking the assistance they need to get financially on track, according to Stacy Chemelewski, a branch manager with First Community Bank of Indiana. For those at a loss on how to get started, Chemelewski recommends first assessing if they have enough money to pay their bills and commit additional funds to savings each month. Often, it requires sacrifice to get to that point, she said, such as reducing trips to the coffee shop or skipping the car wash for a time. “If you’re willing to take that out and take those monies and put that into savings, you have somewhere to start,” she said. “I’ve seen people that make very minimal (money) be able to save and get where they want to go. It has to be a commitment.”
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INVESTING
From left are Evans May Wealth Partners Ian Flanagan, Brooke May, and Elizabeth Evans, and Financial Advisor Grace Speckman. (Photo courtesy of Evans May)
Independent advisors: Evans May Wealth recognized for success By Leila Kheiry leila@youarecurrent.com Carmel-based Evans May Wealth is nationally recognized for its successful business model, helping clients manage and maintain wealth for themselves in the present, and for whoever they choose to pass it on to in the future. The business has been featured in Forbes, and individual partners Elizabeth Evans and Brooke May both have been named to that publication’s lists of top wealth advisors in the nation, with Evans making it to the No. 1 spot for Indiana. May said they started out as financial advisors with Merrill Lynch, but decided about four years ago to launch an independent business. “In 2019, we saw that the industry was changing and that we wanted to be independent and not under the umbrella of a big bank,” she said. “And so we left to start Evans May Wealth, and we opened up shop
in Carmel back in 2019.” May said clients appreciate that independence, because the firm isn’t beholden to a larger entity for investment recommendations. “So if we see an investment out there that we feel is ideal for our clients, we can buy it,” she said, allowing them to move quickly in the clients’ best interest. May said the firm’s independence allowed them to grow quickly and they now manage more than a billion dollars-worth of assets. Without an umbrella bank’s rules, they also have freedom to be interviewed by various news outlets and have their own podcast. Financial Advisor Grace Speckman said that allows them to better serve clients by quickly giving them the information they want. She said the firm focuses on individuals and families, rather than 401K plans or institutional investing. They have a minimum investment of $1 million for new clients.
“We work with business owners, doctors, a lot of people in town — but we’re also across the United States,” Speckman said. “I think we really have a niche in working with multi-generational families. So, generational wealth and thinking about not just the matriarch or the patriarch of the family, but how that wealth transfers down the line and how we can help an entire generation of families.” May added that two of the three partners are women. “That appeals to a lot of people, as well, because we just don’t look like every other financial services team out there,” she said. Heading into 2024, May said they anticipate continued volatility in the market, but they believe it will be higher by the end of the year. She said that volatility shouldn’t discourage people from investing. “It’s important for people who are trying to save and plan for their retirement to have that perspective that things are going to go up and down over time,” she said. “You’re going to make money in the stock market if you’re patient.” For more, visit evansmay.com.
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January 16, 2024 Current Publishing
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