RICE COUNTY FINANCIAL GUIDE by Kate Noet

FEBRUARY 2016

RICE COUNTY

FINANCIAL GUIDE inside

Getting help from a financial professional page 3

What to do with your old NorthfieldNews.com 401K page NorthfieldNews.com 5

3 ways to quickly pay down college debt

NorthfieldNews.com

Northfield News

page 9 a special supplement to

Northfield News Northfield News

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RICE COUNTY FINANCIAL GUIDE

Wednesday, February 24, 2016

Financial options for every phase of your life

Story Index Getting help from a ﬁnancial professional ............................3 Do you have enough in your emergency fund? .......................4 Power of the pig ..................................................................4 Whether you want to save for the future, secure a personal loan, utilize exclusive online and telephone banking services, or enjoy the convenience of our ATMs and many locations, we are here for you. Call, click, or stop by and talk with a banker. If you would like to open an account over the phone, call 1-800-932-6736 any time (or 1-800-311-9311 for service in Spanish). Faribault Main 104 5th St Nw (507) 332-6344 Faribault Westside 300 Western Ave Nw (507) 412-8801 Northfield 700 Water St S (507) 663-7373 wellsfargo.com All loans are subject to application, credit qualification, and income verification. © 2016 Wells Fargo Bank, N.A. All rights reserved. Member FDIC. 122933 02/16

What to do with your old 401k ..............................................5 Making cents of it all ...........................................................6 The best bank for your buck .................................................6 Is a high interest right for you? .............................................7 When to begin saving for retirement .....................................8 Scale back, big & small .......................................................8 3 Ways to quickly pay down college debt ...............................9 How to rebuild your credit ....................................................9 Retirement savings for late bloomers ...................................10 Look for this section on

Cover Design: Kate Townsend-Noet

A special project of the Northﬁeld News 115 5th Street W, Northﬁeld, MN 55057

A special project of the Faribault Daily News 514 Central Avenue, Faribault, MN 55021

Publisher CHAD HJELLMING

Publisher SAM GETT

RICE COUNTY FINANCIAL PLANNING GUIDE, February 2016 is distributed to subscribers and readers of the Northﬁeld News and Faribault Daily News at no additional charge. All advertising contained herein is the responsibility of the advertisers. All rights reserved. ©2016.

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RICE COUNTY FINANCIAL GUIDE

PAGE 3

Getting help from a Financial professional Submitted by Thrivent Financial Jen Becker, FIC, CLTC®, RICP® Lead Financial Consultant 1620 Hwy 60 W Suite 4 Faribault, MN 55021 507-384-3186 jen.becker@thrivent.com Are you suddenly on your own or forced to assume greater responsibility for your financial future? Unsure about whether you’re on the right track with your savings and investments? Finding yourself with new responsibilities, such as the care of a child or an aging parent? Facing other life events, such as marriage, divorce, the sale of a family business, or a career change? Too busy to become a financial expert but needing to make sure your assets are being managed appropriately? Or maybe you simply feel your assets could be invested or protected better than they are now. These are only some of the many circumstances that prompt people to contact someone who can help them address their financial questions and issues. This may be especially true for women, who live longer than men on average and therefore may face an even greater challenge in making their assets last over that longer life span. In fact, one study found that women often value advice from a professional in their financial decision-making even more than men do.* Why work with a financial professional? • A financial professional can apply his or her skills to your specific needs. Just as important, you have someone who can answer questions about things that you may find confusing or

anxiety-provoking. When the financial markets go through one of their periodic downturns, having someone you can turn to may help you make sense of it all. • If you don’t feel confident about your knowledge of investing or specific financial products and services, having someone who monitors the financial markets every day can be helpful. After all, if you hire people to do things like cut your hair, work on your car, and tend to medical issues, it might just make sense to get some help when dealing with important financial issues. • Even if you have the knowledge and ability to manage your own finances, the financial world grows more intricate every day as new products and services are introduced. Also, legislative changes can have a substantial impact on your investment and tax planning strategy. A professional can monitor such developments on an ongoing basis and assess how they might affect your portfolio. • A financial professional may be able to help you see the big picture and make sure the various aspects of your financial life are integrated in a way that makes sense for you. That can be especially important if you own your own business or have complex tax issues. • If you already have a financial plan, a financial professional can act as a sounding board, giving you a reality check to make sure your assumptions and expectations are realistic. For example, if you’ve been investing far more conservatively than is appropriate for your goals and circumstances, either out of fear of making a mistake or from not being aware of how risks can be managed, a finan-

cial professional can help you assess whether and how your portfolio might need adjusting to improve your chances of reaching those goals. When should you consult a professional? You don’t have to wait until an event occurs before consulting a financial professional. Having someone help you develop an overall strategy for approaching your financial goals can be useful at any time. However, in some cases, a specific life event or perceived need can serve as a catalyst for seeking advice. Such events might include: • Marriage, divorce, or the death of a spouse • Having a baby or adopting a child • Planning for a child’s or grandchild’s college education • Buying or selling a family business • Changing jobs or careers • Planning your retirement • Developing an estate plan • Receiving an inheritance or financial windfall Making the most of a professional’s expertise • You’ll need to understand how a financial professional is compensated for his or her services. Some receive a fee based on an hourly rate (usually for specific advice or a financial plan), or on a percentage of your portfolio’s assets and/or income. Some receive a commission from a third party for any products you may purchase. Still others may receive some combination of fees and commissions, while still others may simply receive a salary from their financial services employer. Don’t be reluctant to ask about fees; any repu-

table financial professional shouldn’t hesitate to explain how he or she is compensated. • Even if you’re a relative novice when it comes to finances, don’t be afraid to ask questions if you don’t understand what’s being presented to you. You’re not being rude; you’re simply trying to prevent misunderstandings that could backfire later. • Don’t let yourself be pressured into making a financial decision you’re not comfortable with or don’t understand. This is your money, and you have the right to take whatever time you need. However, give yourself a deadline for your decision so you don’t get caught in “analysis paralysis.” • If you think your financial life simply needs a checkup rather than a complete overhaul, you’ll need to clarify the areas in which you’re looking for assistance. That can help you decide what type of advice you’re looking for from your financial professional, though you should also pay attention to any additional suggestions raised during your discussions. Your plans should take into consideration your financial goals, your time horizon for achieving each one, your current financial and

When considering employing a financial professional, try to determine whether the individual or firm has experience in dealing with situations similar to yours. If you have substantial assets, you may require someone with a broader range of expertise than would be needed if your finances were relatively simple. However, there is no assurance that working with a financial professional will improve investment results. One of the best things you can do for yourself and your family is to be prepared to manage your finances responsibly. Even if you see investing as overwhelming or complicated and boring, you need to know the basics behind a well-thoughtout investment strategy--at least enough to protect yourself from fraud and/or communicate effectively with a financial professional or spouse. emotional ability to tolerate risk, and any recent changes in your circumstances. • Don’t assume you have to be wealthy to make use of a financial professional. While some do focus on cli-

ents with assets above a certain level, others do not. • Think about the scope of the services you’ll GETTING HELP continued on page 7

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RICE COUNTY FINANCIAL GUIDE

Wednesday, February 24, 2016

Do you have enough in your emergency fund? (Metro) Financial experts advise that individuals and families save enough money to cover at least six months’ worth of expenses in the case of an emergency or unforeseen layoff. Others say that savings should be closer to a year’s worth of expenses. In spite of the obvious benefits of having a financial safety net, many people continue to live paycheck to paycheck, either voluntarily or out of necessity. According to Pitney Bowes, a document management services company, and Bankrate. com, many people fall well below the benchmarks suggested for savings accounts, checking accounts, 401(k) plans, and other means of building nest eggs. Data suggests the average American has anywhere from $5,000 to $7,000 in savings and between $2,000 and $4,500 in checking accounts. In 2011, the Digerati Life, a resource to help people make smart financial choices, found that 50 percent of American households didn’t even have a retirement account, while a little more than 7 percent did not have a bank account.

Power of the pig

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Chris Weber, CFP®

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507-645-1841 chris.weber@ceterais.com

1605 Heritage Dr, Northfield, MN 55057

Securities and insurance products are offered through Cetera Investment Services LLC member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Investments are: *Not FDIC/ NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.

By Tresa Erickson

Did you own a piggy bank as a kid? What did it look like? Was it a pink pig of some sort, or something else entirely, like a puppy or a doll? Whatever the design, piggy banks are a great place to store loose change, and they have been around for quite some time. The story of the piggy bank begins in Europe in the 1400s when people made pottery out of orange clay called “Pygg clay.” In addition to eating and drinking from Pygg clay plates, bowls and cups, people occasionally tossed loose change into a Pygg jar at the end of the workday. These so-called Pygg jars soon became Pygg banks. In the 18th century, Pygg banks were made into the shape of a pig and became known as piggy banks. Today, you’ll find piggy banks of all shapes and sizes on the market, most with a slot for coins

and a plug or flap for the removal of money. Piggy banks can be a great tool for teaching kids how to deal with money. Experts advise kids have multiple banks for multiple purposes. One bank might be for saving, another for spending and another for donating. When full, kids could deposit their savings into the bank, make a donation to a charitable cause and spend the rest, unless saving for something more expensive. Piggy banks can teach kids other lessons as well. Many will be compelled to find out how much they have in each bank and learn how to count money in the process. They will learn that a penny is worth one cent, a nickel worth five cents, a dime worth 10 cents, and so forth. They will learn how many pennies, nickels and dimes it takes to make a dollar, and in doing so, discover that appearances can be deceiving. What looks like

a lot of money isn’t always, especially when it comes to pennies, nickels and dimes. Putting money aside is no big deal. Keeping it there, on the other hand, can be. That’s why piggy banks are so important for kids. If the bank is a pig, puppy or some other animal, younger kids can get a kick out of “feeding” it and might think nothing of leaving the “food” there. Should the bank be solid, older kids can drop their money into it and forget about it. Out of sight really is out of mind for some. Should the bank be see-through, kids can actually see the money pile up and may be motivated to continue adding to it until the bank is full. For many, learning how to save and spend early on pays off later in life. If your kids don’t have a piggy bank already, get them one, or two, or three. Show them the power of the pig!

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RICE COUNTY FINANCIAL GUIDE

PAGE 5

What to do with your old 401k Submitted by Greg Paine United Investment Group 430 4th St NW Faribault, MN 55021 507-333-0419 507-202-2847 gpaine@infinexgroup.com www.1stunited.com

ments offered by your IRA trustee, and you may divide up your balance among as many of those investments as you want. By contrast, employer-sponsored plans typically give you a limited menu of investments (usually mutual funds) from which to choose.

What to do with your old 401k... 1. Cash out 2. Roll over to IRA 3. Roll over to new employer 401(k) 4. Leave it where it is

Reasons to roll over to new employer’s 401(k) plan: Many employer-sponsored plans have loan provisions. If you roll over your retirement funds to a new employer’s plan that permits loans, you may be able to borrow up to 50% or $50,000 whichever is less, of the amount you roll over if you need the money. A rollover to your new employer’s 401(k) plan may provide greater creditor protection than a rollover to an IRA. Most 401(k) plans receive unlimited protection from your creditors under federal law. Your creditors (with certain exceptions) cannot attach your plan funds to satisfy any of your debts and obligations, regardless of whether you’ve declared bankruptcy. In contrast, any amounts you rollover to a traditional or Roth IRA are generally protected under federal law only if Prepared by Broadridge Invesyou declare bankruptcy. Any tor Communication Solutions, creditor protection your IRA Inc may receive in cases outside and Insurance products and services of bankruptcy will generally Investment are offered through INFINEX INVESTMENTS, depend on the laws of your Inc. Member FINRA / SIPC. Infinex and the bank are not affiliated. Products and services made particular state. If you are available through Infinex are not insured by the or any other agency of the United State and concerned about assert pro- FDIC are not deposits or obligation of nor guaranteed or tection be sure to seek the as- insured by any bank or bank affiliate. These prodare subject to investment risk, including the sistance of a qualified profes- ucts possible loss of value. sional. NOT FDIC –INSURED. NOT Leave it where it is: INSURED BY ANY FEDERMost plans allow par- AL GOVERNMENT AGENticipants to leave their funds CY. NOT GUARANTEED even though employment is BY THE BANK. MAY GO surrendered. Make sure you DOWN IN VALUE. evaluate the investment op-

What am I entitled to? If you leave your job (voluntarily or involuntarily), you’ll be entitled to a distribution of your vested balance. Your vested balance always includes your own contributions (pretax, after-tax, Roth) and typically any investment earnings in those amounts. It also includes employer contributions (and earnings) that have satisfied your plans vesting schedule. Cash out; be careful! While this pool of dollars may look attractive, don’t spend it unless your absolutely need to. If you take a distribution you’ll be taxed, at ordinary income tax rates, on the entire value of the account except any after-tax or Roth 401(k) contributions you’ve made. And, if you’re not yet age 59 ½ then a 10% penalty may apply to the taxable portion of your payout. Reasons to roll over to an IRA You generally have more investment choices with an IRA than with an employer’s 401(k) plan. You typically may freely move your money around to various invest-

tions available to you and the fees associated within those investment options and any administrative fees. Important to Remember: Assuming all options are available to you, there is no right or wrong answer to these questions. There are strong arguments to be made on all sides. You need to weigh all factors, and make a decisions based on your own needs and priorities. Its best to have a professional to assist you with this, since the decision you make may have significant consequences, both now and in the future. When evaluating whether to initiate a rollover always be sure to (1) ask about possible surrender charges that may be imposed by your employer plan, or new surrender charges that your IRA may impose, (2) compare investment fees and expenses charged by your IRA (and investment funds) with those charged by your employer plan (if any), and (3) understand any accumulated rights or guarantees that you may be giving up by transferring funds out of your employer plan.

WHATEVER YOUR FINANCIAL GOALS ... We’ll help you reach them.

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• Estate and legacy strategies • Education funding options • Managed accounts • Retail brokerage

We’ll create a financial strategy that reflects your goals and values.

Jennifer L. Becker CLTC®, RICP®, FIC Financial Consultant 1620 Highway 60 W Suite 4 Faribault, MN 55021

507-384-3186

jen.becker@thrivent.com Facebook.com/jen.becker.thrivent Linkedin.com/in/jenbeckerthrivent

Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. Investment advisory services, including fee-based financial planning services, are available through qualified investment advisor representatives only. For additional important information, visit Thrivent.com/disclosures. Appleton, Wisconsin • Minneapolis, Minnesota • Thrivent.com • 800-847-4836

Thrivent Financial was named one of the “World’s Most Ethical Companies” by Ethisphere Institute 2012–2015.

20328 R9-15

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RICE COUNTY FINANCIAL GUIDE

Making cents of it all By Tresa Erickson

You have an accountant to help you with your taxes. You have an insurance agent to help you with your insurance. But, do you have someone to help you with your finances, someone to guide you in saving, investing and growing your money? If not, you may want to consider hiring a financial planner. Financial planners show people how to make the most of their hard-earned dollars and reach certain goals, like saving for a home addition

or retiring early. As with any professional, hiring the right financial planner takes time. You want a planner that has been in business for some time, is certified by the Certified Financial Planner Board of Standards and will look out for your best interests at all times. To start, ask for referrals from friends and family, preferably individuals who are in the same life stage as you. While your mother’s financial planner may have done an excellent job guiding her through retirement,

that doesn’t mean the planner will work for you. They may specialize in retirement planning and deal primarily with clients nearing retirement. Find out what your family and friends like and dislike about their planners and create a list of potential names. Consult the phone book and Internet for additional names to round out your list. With list in hand, you can start the actual research. Most planners will have websites. Read these from beginning to end, taking special note of how the planner gets

paid. Some planners charge an hourly rate or flat fee, whereas others work on commission. Be careful of the latter as they may not always have your best interests in mind. You don’t want to pay for products you don’t need just so the planner can make a commission off them. Set up an appointment with the top five choices on your list. Find out what services the planner provides and if they have any specialties. Again, some planners may focus solely on retirement, while others restrict

Wednesday, February 24, 2016

their services to people with a certain income. Find out what and whom the planner caters to and ask about their investment approach and schedule. Where might they invest your money and how often would they meet with you to discuss the results? Weekly? Monthly? Yearly? Get a sample financial plan and a list of references. Once at home, take the time to research your choices further. Call all of the references given and find out what clients like and dislike about each of the planners on your

list. Conduct a search online to see if anything comes up. Check with the Better Business Bureau for complaints. Run a background search to see if the planner’s record is clean. Make sure all of the planners are legitimate and their credentials are current. Meet with your top choices again, if necessary, and select the planner with the best plan for your money. Chances are you will be working with your financial planner for a long time. Make sure you select the right person for the job.

The best bank for your buck By Tresa Erickson Shopping for a bank is like shopping for any other business. You need to know what you want and take the time to research your options. If you are looking for a new bank, here are some pointers. Before you do anything, sit down and make a list of your needs. Perhaps you need both a checking and a savings account. Perhaps you need convenient teller hours and online bill pay. Perhaps you need financial planning. Different banks offer • Retirement Services • 401k and different services, and you will want to•focus on banks that can Wealth Management strategies serve your needs.

Your source for

LOCAL, PROFESSIONAL Your source for INVESTMENT ADVICE! LOCAL, PROFESSIONAL INVESTMENT ADVICE! IRA rollovers

• Retirement Services • 401k and IRA rollovers • College Savings Plans and more.

• Wealth Management strategies Your source for • College Savings Plans and more.

Your source for Christopher L. Kitzman LOCAL, PROFESSIONAL Your source for LOCAL, PROFESSIONAL INVESTMENT ADVICE! INVESTMENT ADVICE! • Retirement Services • 401k and IRA332-4620 rollovers (507) Financial Advisor

LOCAL, PROFESSIONAL Christopher L. Kitzman, CRC INVESTMENT ADVICE! (507) 332-4620 Christopher L. Kitzman

Financial Advisor • Retirement Services • 401k and IRA rollovers • Wealth ManagementMN strategies Ins. Lic.# 20043625 (507) 332-4620 • Wealth Management strategies • College Savings Plans and more. • College Savings Plans and more. MN Ins. Lic.# 20043625

Located at State Bank of Faribault Christopher L. Kitzman 428 Central Ave. N.Financial Faribault, 55021 Advisor Certified Retirement Counselor® Located at State BankMN of Faribault

(507) 428Inc.Central Ave.FINRA/SIPC N. Faribault, MNInvestment 55021 Investment Centers of America, (ICA),332-4620 member and a Registered MN Ins. Lic.# 20043625 Advisor, is not affiliated withInvestment State Bank of Faribault orInc.SBF Investment Center. Securities, advisory America,20043625 (ICA), member FINRA/SIPC and a Registered Investment MN Centers Ins. ofLic.# services and insurance products throughwith ICAState andBank affiliated insurance *notSecurities, advisory Advisor,offered is not affiliated of Faribault or SBFagencies InvestmentareCenter. Located at State Bank of Faribault services and insurance products offered through ICAAve. and* affiliated insurance or agencies are *not insured by the FDIC or any other Federal Government agency not a deposit Located at State Bank of Faribault • 428 Central N. Faribault, MN 55021 428 Central Ave. N. Faribault, MN 55021 insured by the FDIC any Federal Government agency * affiliated not a deposit or Bank other obligation of,Inc.or(ICA), guaranteed by anyor bank their affiliates * subject to risks Investment America, member FINRA/SIPC andother aor Registered Investment Advisor, is not with State Investment Centers ofCenters America, Inc.of (ICA), member FINRA/SIPC and a Registered Investment other of, or guaranteed by any bank or their affiliates subject to risks of Faribault orwith SBF Securities, advisory services and insurance products offered through ICA*and affiliated insurance Advisor, is not affiliated State Investment Bank of Faribault orCenter. SBF Investment Center.obligation Securities, advisory including thethrough possible loss ofagencies principal amount invested. services and insurance ICA and insurance are *notFederal Government agency * not a deposit or other obligation of, or agencies are products *not offered insured by theaffiliated FDIC or any other

• Retirement Services • 401k and IRA rollovers • Wealth Management strategies including the possible loss of principal amount invested. • College Savings Plans and more.

insured by the FDICby or any other FederalorGovernment agency * not a deposit orto risks including the possible loss of principal amount invested. guaranteed any bank their affiliates * subject other obligation of, or guaranteed by any bank or their affiliates * subject to risks including the possible loss of principal amount invested.

christopher.kitzman@investmentcenters.com christopher.kitzman@investmentcenters.com

Ask family and friends for recommendations. Find out what they like and do not like about the bank that serves them. Consult the Yellow Pages and the Internet, writing down the names of any banks that offer the services you need. Once you have a list of potential targets, you can start researching them. The best banks will have a website covering every aspect of their operation from business hours to fee schedules to rate sheets. The website will also provide detailed information on the bank’s service offerings. Read everything carefully and cross off the names of any banks that will not

serve your needs. To narrow your list further, study each bank in detail. Note the location of the bank and its branches, making sure there is an office nearby for face-toface conversations should issues arise. Note the fees. Find out what you will be charged for, whether writing checks, getting an account balance, withdrawing from an ATM outside of the system or overdrafting on an account. Note the interest rates as well and see if the bank offers offer lower fees and higher interest rates for the use of multiple services. Review every page of the website and don’t hesitate to call

for more information. Make an appointment with the top five choices on your list for a tour of the facility and an analysis of the services offered. Find out what the bank does with the money it manages. Where does it invest it? In big business? In small business? In the community? If you want your money to make a difference, then you’ll need a bank that will invest in the community. Select the bank that can serve your needs best. It is your money after all. Put it where you feel most comfortable, whether the bank two doors down or in the town over.

It’s your retirement!

Plan for it, it won’t just happen! Retirement Income & Distribution Planning Robert D. Simpson, CFP

1121 25th Ave NW, Faribault, MN

507-334-9274

Robertsimpsonandassociates.com

Robert D. Simpson is a Registered Representative and Investment Advisor Representative of Capital Financial Services, Inc. Securities and Investment Advice offered through Capital Financial Services, Inc. Broker/Dealer Investment Advisor Member FINRA/SIPC.

Wednesday, February 24, 2016

RICE COUNTY FINANCIAL GUIDE

GETTING HELP continued from page 3 need. Do you want comprehensive help in a variety of areas, or would you be better off assembling a team of specialists? Do you need an ongoing relationship, or can your needs be taken care of on a one-time basis? If you’re a relative novice or having to deal with decisions you’ve never had to make before, someone with broad-based expertise might be a good place to start. • Even if you feel you need detailed advice from several different specialists--for example, if you own your own business--consider whether you might benefit from having someone who can coordinate among them. A financial professional can sometimes be a gateway to other professionals who can help with specific aspects of your finances, such as accounting, tax and/or estate planning, insurance, and investments. • If you ant com-

prehensive management, you may be able to give a financial professional the independent authority to make trading decisions for your portfolio without checking with you first. In that case, you’ll likely be asked to help develop and sign an investment policy statement that spells out the specifics of the firm’s decision-making authority and the guidelines to be followed when making those decisions. If you feel that consulting an expert might be helpful, don’t postpone making that call. The sooner you get your questions answered, the sooner you’ll be able to pay more attention to the things-family, friends, career, hobbies--that an organized financial life could help you enjoy. *June 2014 study of affluent individuals conducted by

Spectrem Group, a research/ consulting firm focused on the affluent and retirement markets. The information provided in these materials, developed by an independent third party, is for informational purposes only and has been obtained from sources considered to be reliable. However, Thrivent Financial does not guarantee that the foregoing material is accurate or complete. The material is general in nature and does not purport to be a complete description of the products, securities, concepts, services, markets, or developments referred to in this material. This information is not intended as a solicitation or an offer to buy or sell any product or service referred to herein. The information does not take into consideration your personal financial or account information. Products mentioned may not be suitable for all individuals. Past performance may not be indicative of future results. Thrivent Financial and its respective associates and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative, and as appropriate, your attorney and/or tax professional for additional information. Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2016.

PAGE 7

Is a high interest Right for you?

(Metro) While many banking customers have grown accustomed to low interest rates on their checkings and savings accounts, some financial institutions still offer higherthan-standard interest rates to their account holders. Some banks or credit unions may offer higher interest rates on accounts up to a predetermined amount. For example, such accounts may earn higher interest rates on the first $20,000 in deposits, while any additional deposits earn less interest, if any. Some institutions incentivize using accounts by offering higher interest rates to account holders who use their debit cards “X” amount of times each month, while others may offer higher interest rates to customers who log in to their accounts several times per month. Customers who use direct deposit also may be eligible for higher interest rates. Though a 3 percent interest rate might not seem like too great an incentive to adhere to the bank’s policies, over time the interest earned on such accounts will dwarf that earned on today’s standard low-interest checkings and savings accounts.

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PAGE 8

RICE COUNTY FINANCIAL GUIDE

Wednesday, February 24, 2016

When to begin saving for retirement (Metro) After finishing school and landing their first jobs, the furthest thing on many young professionals’ minds is retirement. Although the day young workers will cash their last paychecks and bid farewell to the workplace may be decades down the road, it’s never too early to begin saving for retirement. The sooner a person begins saving for retirement, the more time his or her money will have to grow. As more deposits are made and interest is compounded, retirement investments can grow considerably. Ideally, workers should begin saving as soon as possible. Compounding interest produces a better return for professionals who start saving when they are young than for those who delay their retirement savings. Unfortunately, many of today’s new workers are not prioritizing retirement. According to a study from Hewitt Associates, just 31 percent of Generation Y employees (individuals born after 1978) who are able to deposit mon-

ey into a 401(k) retirement plan actually do so. The easiest way to save for retirement is to make the process entirely automatic. One can achieve this by signing up for an employersponsored 401(k) or another retirement plan. When opening a 401(k), workers will have a predetermined portion of their earnings deducted from their paychecks and deposited into the retirement account. Such contributions are made prior to being taxed, adding even more incentive to begin saving as soon as possible. Money deposited into a 401(k) will then be available for withdrawal when the employee reaches retirement age. If the employer has a matching program, even better, as that means the company will match employee contributions up to a certain percentage. A person may also want to establish an IRA (individual retirement account). IRAs, which are available as traditional IRAs or Roth IRAs, are typically offered through financial

establishments and provide tax-friendly ways to save for retirement. There are differences between traditional IRAs and Roth IRAs, and these differences are related to taxes and may depend on when contributions are made as well as when withdrawals are made. Speak with a financial planner to help you determine the IRA best suited to your personal needs. Young professionals may want to keep more of their retirement funds in stocks and aggressive accounts to earn more. As one gets older and closer to retirement, a conservative approach is more prudent. Advisors may suggest older professionals then begin investing in bonds and other less volatile opportunities. Professionals of all ages can speak with a financial planner for more information regarding retirement savings. In addition, options to invest through an employer can be discussed with human resources personnel.

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1225 Hwy 60 W, Faribault, MN 55021 | Phone: (507) 332-8012 Comprehensive Wealth Solutions LLC and Woodbury Financial Services, Inc. are not affiliated entities. Securities and Investment Advisory Services Offered Through Woodbury Financial Services, Inc Member FINRA, SIPC and Registered Investment Advisor

SCALE BACK, BIG AND SMALL By Tresa Erickson

Saving can be hard, especially when you have kids. Kids have a lot of needs and wants. Combine that with the monthly bills, and there may be nothing left for the savings account, at least not at first. There are ways to cut back, big and small. Try these tips. Wait to purchase items until they are on sale, especially items that fall under the “want” category. Kid want a bike? Wait until winter when prices are reduced to make way for new merchandise. Clip coupons for items you use often. Look for deals in magazines, newspapers, flyers and online. Shop on double and triple coupon days to get more bang for your buck. Forgo some extras. Forget that cup of coffee at the

drive-through every morning. Make your own coffee at home, fill up your thermos and away you go. Let that magazine subscription or club membership run out. Check out the magazine at the library or exercise at home. Make your own. Know how to knit or sew? Make some clothes. Like to bake? Whip up your own baked goods for all of the special events in your life. Almost out of cleaner? Make your own organic cleaners from simple substances, like lemon juice and vinegar. Dine in. Eating out not only puts a dent in your wallet but packs on the pounds. Save yourself some dough and cut the calories by eating in as much as you can. Keep meals tasty with new recipes. Opt for backyard entertainment. Forgo that big-

name concert hours away in favor of a free one downtown featuring local talent. Host birthday parties at home and offer plenty of old-fashioned fun, like three-legged races. Spend the day at the park or library. Downsize. As you get used to cutting back, you can start making bigger changes. You can give Mother Earth a break and get rid of your second or third car. You can take fewer big vacations in favor of smaller ones at home. You can keep your house and pay a bit more on the mortgage each month to pay it off faster. Spend less and save more. There are dozens of ways you can go about this goal, and it doesn’t have to be painful. Take steps to cut back here and there, and work your way up to bigger and better saving strategies.

Wednesday, February 24, 2016

RICE COUNTY FINANCIAL GUIDE

3 ways to quickly pay down college debt

(Metro) Student loan debt is a big concern for today’s newly minted college graduates. According to an analysis of government data by Edvisors.com, a website that provides financial information about college to students and parents, the average student in the class of 2015 will graduate with more than $35,000 in student debt. That figure is roughly $2,000 more than the class of 2014 graduates faced upon receiving their degrees. With such substantial debts, it’s no wonder many college graduates find themselves looking for ways to pay down that debt as quickly as possible once they leave campus life behind. Paying down college debt may seem daunting at first, but the follow-

ing are some ways for recent grads to get out from under that debt sooner rather than later. 1. Pay more than you owe. The best way to reduce the principal on student loans quickly is to pay more than you owe each month. Once the repayment grace period ends, grads will see what their monthly student loan payment is. Paying more than that amount each month can drastically reduce your repayment period, and you will pay considerably less in interest over the life of the loan. For example, a graduate who owes $25,000 and pays 6 percent interest annually for 10 years will pay roughly $278 per month to eliminate that loan in exactly 120 months. Over

those 120 months, grads will have paid more than $8,300 in interest in addition to their $25,000 principal. However, grads who pay an additional $50 per month will pay their loans off nearly two years earlier and pay nearly $2,000 less in interest over the life of the repayment. 2. Arrange for automatic deposits into a repayment fund. One of the more difficult parts of repaying student loans for recent grads is setting aside enough money to pay them off. Upon landing their first professional jobs, new grads are often making more money than they’ve ever earned in the past, and many have no idea how to manage their newfound financial windfalls. In addi-

tion to making your monthly payments via your everyday checking account, arrange for automatic deposits into a savings account you will exclusively use to repay your student loans so you are not tempted to spend that money on more frivolous pursuits. You won’t miss the money if you never get used to having it, and you will celebrate the day the balance in your student loan savings account matches the payoff amount on your student loan balance. 3. Make plans. Failure to make a plan is one way to miss the opportunity to pay off your college debt as quickly as possible. Make specific financial goals, such as owning your own home in ‘X’ amount of years or saving money for post-

How to rebuild your credit (Metro) Many men and women work hard to build strong credit and demonstrate their worthiness as borrowers to lenders. But sometimes an unforeseen event, such as a layoff or medical emergency, forces people to rely too heavily on credit, which can negatively affect their credit rating and make them less likely to secure favorable loans in the future. Rebuilding credit takes time. Lenders want their borrowers to have demonstrated their long-term financial responsibility, so it may take men and women who have suffered a credit setback a substantial amount of time to regain the trust of prospective lenders. But there is a way to rebuild credit and restore your financial reputation.

• E amine your credit report. The first step toward rebuilding your credit is to examine where you currently are. Some credit card companies now offer monthly credit reports or credit updates free of charge to cardholders. If you do not have such a card, the Fair Credit Reporting Act permits consumers to request a free credit report once every 12 months from each of the three major credit reporting agencies (i.e., Equifax, Experian and TransUnion). Examine your credit report for any errors, and dispute such errors immediately. • tart using your cards again. Men and women who have been through the bad credit wringer may want to avoid swiping their credit cards ever again. But dem-

onstrating your ability to use credit cards and pay your balances in full and on time is an essential part of rebuilding your credit. Use your credit cards to pay small monthly bills, such as your gym membership, and pay the balance in full each month. Over time, doing so will produce a pattern that indicates you are worthy of credit and capable of handling it responsibly. • Apply for an installment loan. Another way to demonstrate your credit worthiness to prospective lenders is to apply for and get an installment loan. If your credit mishaps are very recent, you may want to wait to apply for an installment loan until you have started to rebound and indicate you can once again pay your bills in full and on

time each month. Waiting will earn you a more borrower-friendly interest rate, and you won’t be running the risk of being denied for a loan. But it’s good to apply for an installment loan such as an auto loan because you can then use

PAGE 9

Graduates who stay disciplined and pay a little extra each month can repay their student loans long before the loans reach maturity. graduate tuition. Having specific goals and plans in place can provide the motivation you need to pay down college debt sooner rather than later.

dates many recent graduates. But those who stay disciplined can repay their loans quickly and regain some financial freedom as a result.

Student loan debt intimithat to restore your financial reputation by making monthly payments on time. • Make all of your payments. Once your credit has taken a hit and your score has sunk, lenders will look for any signs that you may still be a credit risk. Even as your score begins to rise once again, you must continue to make all of your payments on time. One skipped or missed payment is

a big red flag to lenders, especially if borrowers have had credit troubles in the past. Don’t let all your hard work go to waste by missing payments. Rebuilding credit is not always so easy, but many people have endured financial troubles only to reemerge as borrowers lenders want to work with.

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RICE COUNTY FINANCIAL GUIDE

Wednesday, February 24, 2016

Retirement saving for late bloomers (Metro) Today’s young professionals hear about the importance of saving for retirement seemingly from the moment they are hired. In addition to discussions with human resources personnel about employer-sponsored retirement plans, young professionals are learning about the importance of saving for retirement thanks to the abundance of financialplanning advertisements on television, the radio and the Internet. Older workers may not have been so lucky, and many may find themselves trying to play catch up as retirement age draws closer. While it’s important to begin saving for retirement as early as possible, late bloomers whose retirement dates are nearing can still take steps to secure their financial futures.

• Pay do n debts. Eliminating debt is good for men and women of all ages, but especially so for those nearing retirement. Substantial debt may delay your retirement and can greatly reduce your quality of life during retirement. If you still have substantial debt, eliminate that debt before you start saving additional money for retirement. Once your debt slate has been wiped clean, you can then increase your retirement contributions. • Eliminate unnecessary expenses. If your retirement savings are low (many financial advisors now advise men and women that they will need at least 60 percent of their pre-retirement income each year they are retired), start cutting back on unnecessary expenses and reallocate that money toward

retirement saving. Cutting out luxury items, such as vacations to exotic locales or country club memberships, is one way to save money. But don’t overlook the simpler

Is A 401K Rollover Right For You?

ways to save, such as canceling your cable subscription or dining at home more often. • Do nsi e your home. Many empty nesters downsi e their homes as retirement

nears, and doing so can help you save a substantial amount of money. If the kids no longer live at home or if you simply have more space than you will need after retirement, do nsi e to a smaller, less expensive home. Monitor the real estate market before you decide to do nsi e so you can be sure to get the best deal on your current home. Do nsi ing saves on monthly utility bills, property taxes and a host of additional expenses. Do nsi ing also means less maintenance, which gives you more time to pursue your hobbies upon retiring. • ake on some additional work. While you may have long felt you would slowly wind down in the years immediately preceding retirement, taking on some additional work outside of your current job is a great

way to save more for retirement and perhaps even lay the foundation for a postretirement career. Workers over the age of 50 can be invaluable resources to startups or other businesses looking for executives who have been there, done that. Look for part-time jobs that seek such e perience. Even if the initial jobs don’t bowl you over financially, parttime consultant work in retirement can make up for lost retirement savings and may even make your retirement years more fulfilling. Men and women on the verge of retirement can take many steps to grow their retirement savings and make their golden years that much more enjoyable.

Plan For Tomorrow Today

Consult with UIG regarding your choices!

Visit 1st United Bank today to learn the basics and find the right IRA for your.

• Rollover your 401K into an IRA • Roll assets to new employer plan • Keep assets in existing employer plan • Cash-out Contact us today at

333-0418 Clay Curwin

Greg Paine

or by email at ccurwin@UIGwealth.com gpaine@UIGwealth.com

www.1stunited.com Located inside 1st United Bank 430 4th Street NW • Faribault

(507) 333-0419

Securities offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. United Investment Group is a trade name of 1st United Bank. Infinex and the bank are not affiliated. Products and services made available are not insured or guaranteed by any bank, affiliate, FDIC or any other agency of the United States. Products are subject to investment risk, including possible loss of value.

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Wednesday, February 24, 2016

RICE COUNTY FINANCIAL GUIDE

PAGE 11

Retirement May Be Far Off, But the April 15 Deadline for IRA Contributions Isn’t.

When it comes to your to-do

You have only so many years to prepare for retirement. That’s why contributing to your Individual Retirement Account (IRA) is so important. list, Fortunately, you still have time to maximize your 2013 IRA contribution before the April 15 deadline.

When it comes to your to-do first. list, put your future

put your future first.

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PAGE 12

RICE COUNTY FINANCIAL GUIDE

320 4th St NW, Faribault, MN 55021

Wednesday, February 24, 2016

507-334-8888

15-1446

1300 Bollenbacher Dr, Northfield, MN 55057

507-645-6281