Money Matters by Perham Focus

2015 A SPECIAL SUPPLEMENT TO THE PERHAM FOCUS

A season of reflection. Making a Adifference. time for thanks.

Right here. Every day.

At Bremer Bank, we believe it takes an experienced team with the commitment to make a difference. It takes the drive to build close relationships with our clients so we can identify solutions to meet their specific needs. And it takes the desire to do everything possible to enhance our client’s financial health. But most of all, it takes working together. Because ultimately, when our individual and business clients are successful, we’re successful, and our whole community is healthier.

3/3/15 10:54 AM

TURNING YOUR DREAMS INTO A REALITY CAN BE THAT EASY. At First National Bank you can count on a local process for the quick answers you deserve. Stop in or apply online anytime at fnbhenning.com.

001212067r1

All Types of Effective Professional Collections - Since 1964

CREDITORS SERVICE COMPANY cscinc@arvig.net

3 Mortgage terms to know �� 4 How to create your household budget �� 6 Going green makes financial sense �� 9 How you can finance home improvement projects �� 10 How to easily grow your savings �� 13 Steps involved with estate planning �� 14

218-346- 5320 Toll Free: 800-292-5124

222 2nd Ave SE, Ste A Perham, MN 56573

Farming is a Risky Business... Do YOU have the RIGHT insurance? Contact Denise by March 16th

Bankruptcy: Is it your best option? ��

16 Explaining 401(k) fees �� 17

109 Coney Street West, Perham 218-346-7290 • 1-800-582-7290

Get the Complete

PUBLISHER Melissa Swenson BUSINESS MANAGER Sherri Lefebvre

Healthcare Coverage You’ve Been Missing

SALES REPRESENTATIVES Cecily Johnson • Kim Dobberstein

Midwest Health Benefits offers: • Health Insurance • Life Insurance • Small Group Health Plans • Disability • Long Term Care • Medicare Supplements

CREATIVE SERVICES Luanna Lake • Carol Hennen Rachel Poser • Cindy Gilster Sara Leitheiser

222 2nd Ave. SE • Perham, MN 56573 p: 218.346.5900 • f: 218.346.5901 www.perhamfocus.com 2

MONEY MATTERS 2015

001214251r1

INDIVIDUALS - FAMILIES - BUSINESSES

Rachel Staebler Lustila

Contact Rachel Staebler Lustila or Amelia Holmer today 218-346-7642 610 3rd Ave., SE, Perham, MN perham@midwesthealthbenefits.com www.MidwestHealthBenefits.com

001214345r1

oney saving tips for M working professionals ��

001214373r1

MEMBER OF ACA

MONEY-SAVING TIPS FOR WORKING PROFESSIONALS

orking professionals know that going to work every day can be costly. From commuting costs to the expenses necessary to maintain a professional wardrobe, going to work can be hard on the pocketbook. The following are a few ways workers can save some cash. ❖ Embrace direct deposit. If your company offers direct deposit, take advantage of that offering. Having your paycheck directly deposited into your savings or checking account can eliminate some unnecessary spending, and your bank may even waive monthly fees if you have a certain amount of money directly deposited into your account each month. ❖ Get creative with kid care. According to a report by the National Conference of State Legislatures, concerns about child care cause more problems in the workplace than any other family-related issue. Child care can be quite expensive. If your employer does not offer on-site child care, find out if a parent or another family member can care for your child at no cost. ❖ Bring your lunch. Bringing your lunch to work each day can save you a considerable amount of money. Limit lunches out to one day per week. ❖ Enroll in pre-tax savings plans. Explore the various programs that enable you to set aside pre-tax dollars for expenses like child care,

medical expenses or commuting costs. A certain portion of your paycheck is withdrawn before it is taxed, saving you money when it comes time to file your income tax. ❖ Share your commute. Carpooling is an easy and economical way to get to work. Split the expenses

with your coworkers who live nearby. A company carpool can save you money on fuel and add years to the life of each participant’s automobile. ❖ Shop smart. Take advantage of sales or shop consignment stores when supplementing your work wardrobe. ❖

MONEY MATTERS 2015

MORTGAGE TERMS TO KNOW B

uying a home is simultaneously exciting and stressful. Owning a home is still a dream for many people, but first-time buyers often find that their unfamiliarity with the home buying process is a source of stress. Part of that stress stems from the terminology associated with home mortgages. Many terms may raise an eyebrow among first-time buyers, so the following are a few mortgage terms buyers can familiarize themselves with to facilitate the process of buying their own homes with Central Minnesota Credit Union. ❖ Closing costs: Buying a home is expensive, and part of that expense is the closing costs. Any time a real

MONEY MATTERS 2015

estate transaction occurs, that transaction is accompanied by certain expenses, which are known as the closing costs. Closing costs may include attorney fees, loan origination fees, title insurance and escrow payments. Buyers can sometimes negotiate with the seller so the seller will agree to pay the closing costs, or the costs can be shared by the buyer and the seller. But buyers may also pay the closing costs in their entirety on their own. Central Minnesota Credit Union, we are making it more affordable with competitive rates and $1,000 origination charges* ❖ Escrow: Escrow is a bond,

deed, document or money kept in the custody of a third party until a real estate transaction has been completed. In addition, escrow accounts are used to hold the property tax and insurance fees that are collected via your monthly mortgage payment. ❖ Fixed-rate mortgage: A fixed-rate mortgage, unlike an adjustable rate mortgage, is one in which the interest rate on the mortgage remains the same for the life of the loan. Buyers typically prefer a fixedrate mortgage because they know exactly what they will be paying for their home each month. An adjustable rate mortgage, often referred to as an ARM loan, is one that typically comes

with a lower interest rate than a fixedrate mortgage, but that lower rate is usually only locked in for a relatively brief period of time, such as one year. Once that initial time period is over, the interest rate will then increase and may increase several times thereafter over the life of the loan. ❖ PMI: PMI, which stands for private mortgage insurance, must be purchased by home buyers who are financing more than 80 percent of their homes. The standard down payment when purchasing a home is 20 percent, but some buyers cannot afford such a down payment. As a result, the lender then mandates that such buyers purchase PMI, which protects the lenders if the borrower defaults on the loan. The cost of PMI will be added to your mortgage payment, and once you have 20 percent equity in your home you can cancel PMI, at which time your monthly mortgage payment will decrease. ❖ Title insurance: Title insurance is a tool that protects both the buyer and the seller against legal issues that may arise as a result of the home’s title. Title insurance protects buyers and the lender from the possibility that the seller was not legally permitted to transfer ownership of the property to the buyer. Title insurance may also protect sellers from any issues that may arise that threaten his or her ability to sell the home. At Central Minnesota Credit Union,

if it is important to you, we’ll make it happen. Whether you are a firsttime buyer, ready to build your dream home or purchase a vacation property, our mortgage lenders will focus on helping you reach your goal. PLUS! We help make it more affordable with competitive rates and

$1,000 origination charges* *Origination charges do not include appraisal, credit report, flood certification, title, recording, document fees, or deeds. Does not apply to FHA, AgFirst, USDA or MHFA loans. On approved credit. Other restrictions apply. Ask for details. ❖

You needed a place to call home. So we made that our focus.

Whether you are a first-time buyer, ready to build your dream home or purchase a vacation property, our mortgage lenders will help you reach your goal.

Talk to one of our Mortgage Lenders today: 888.330.8482 or apply online: mortgage.mycmcu.org 001214383r1

Federally Insured by NCUA

MONEY MATTERS 2015

HOW TO CREATE YOUR

HOUSEHOLD E

BUDGET

stablishing a household budget is a great way for men and women to control their money and secure their financial futures. Without a carefully designed budget, families can easily overspend and eventually find themselves facing financial peril. Building a household budget can be intimidating. Men and women do not always enjoy facing their finances head-on, but creating a household budget does not have to be an unwelcomed experience. â?&#x2013; Discuss your goals. Men and women working together to create their household budgets should use their goals as the foundation for their budgets. Recently married couples who want to one day start a family will have different financial priorities than couples who have no intention of having a family. In addition to goals regarding a potential family, discuss your goals about retirement. Distinguishing between short-term goals, such as eliminating credit card debt, and long-term goals, such as saving for retirement, is an important step to establishing a budget. Once your goals have been discussed and set, you can then begin to formulate a budget that makes achieving those goals possible. â?&#x2013; Assess your financial situation. After you have set your goals, examine your financial situation. Iden-

MONEY MATTERS 2015

tify your net income and then make a list of your outstanding debts and monthly expenses. When establishing your budget, prioritize eliminating your debts. Getting out of debt, especially consumer debt, should take precedence over saving for retirement. Once you have eliminated your debt, you can then allocate more funds to saving for retirement. An honest assessment of your financial situation should provide you with a solid understanding of how you’re spending your money, and which areas, if any, you can spend less in an effort to save more each month. ❖ Put your plan in motion. Once you have identified your net income and monthly expenses, you can put your plan in motion. If you have prioritized eliminating debt, then devote as much of your monthly budget to paying down your debts as possible. Resolve to pay at least ‘X’ amount of money to pay down debt each month, paying more if possible, until you are debt-free. You may need to adjust this plan as unforeseen circumstances arise, but try to stick to your initial plan as closely as possible, especially if you find it’s working. ❖ Continue to monitor your spending. An effective household budget should free up some of your funds, but it’s important that you continue to monitor your spending even if your budget is affording you some financial freedom. Frivolous spending may have landed you in financial hot

water to begin with, so don’t allow it to jeopardize your finances once again. As you monitor your spending, look for ways to spend less. Spending less now can make it easier to realize your long-term financial goals. Discuss your budget each month. A household budget is a fluid thing, so together with your spouse or partner

examine your budget each month. Discuss what’s working, what’s not working and any potential changes you can make to increase the likelihood that you realize your financial goals. Make an effort to have this discussion each month, as the longer you ignore your finances the more time issues will have to fester. ❖

No matter where you’re at along your life’s journey,

WE’RE THERE WITH YOU…

You use your phone to connect with friends, play games and more…

Why not bank on it? 11 North Walker • PO Box 278 • New York Mills, MN 56567 218-385-2300 Telephone • 218-385-9303 Fax

Farmers & Merchants State Bank

www.fmbanknym.com

…EVERY STEP OF THE WAY!

New York Mills Since 1916

001212081r1

MONEY MATTERS 2015

GOING

GREEN

MAKES FINANCIAL SENSE

eing “green” is not just a buzzword today but also a way of life for an increasing number of people. The benefits of making some environmental strides not only extend to safeguarding resources for future generations. For those who have not yet embraced environmentally friendly actions, perhaps the financial rewards of doing so may be the catalyst for change. A side effect of being environmentally conscious often can be saving money. In fact, depending on the initiatives taken, savings can be anywhere from a few dollars to several thousand. Naturally, some eco-changes do require an initial investment, such as purchasing a new energy-saving device or appliance. Many others do not and only save you money. Whether you’re looking for triedand-true ways to go green, relatively easy ways to save money or both, the following are some ideas that work. ❖ Cook more meals at home. Convenience meals may be easy, but they’re more expensive than cooking fresh meals for breakfast, lunch and dinner. What’s more, convenience foods tend to be overly packaged and may be shipped great distances. Simply packing a lunch for work each day can save you around $100 per month. ❖ Find a carpooling buddy.

Share your ride to work with one or more people, and not only are you saving fuel, wear and tear on your car and possible toll charges, but you will save money as well. Some calculations paint a savings of around $650 a year for carpoolers who share their ride and gas bill with only one friend. That may be incentive enough to split commuting costs and tasks. ❖ Try public transportation. If you are more of a commuting loner or do not have anyone nearby to split the ride, try switching to public transportation, where available. Not only will you reduce your carbon footprint by using mass transit, biking or walking to work, but you will also save thousands on trips that would depreciate your vehicle’s value. ❖ Make smarter buys. So many items are available at the click of a button or by visiting mass retail chains. However, not every purchase is a smart buy - even if it costs less. Some cheap consumer goods are not worth the smaller price tag. They’re produced overseas in areas with lax environmental regulations and then may be shipped thousands of miles. Sometimes buying more expensive, locally produced items makes better financial sense in the long run. These products will last longer and not need replacing in mere months. ❖ Rent, borrow and give. Most

people are at fault for purchasing a gadget, tool or small appliance they had every intention of putting to good use. But after one use, that item is now collecting dust on a shelf somewhere. Instead of always thinking to buy first, save money by investigating rental agreements or borrowing belongings from others. Plenty of people have equally dusty items sitting in their homes that they’ll likely lend out. The cost is considerably less than purchasing new, especially for a one-time use item. ❖ Grow a garden. Produce prices continue to climb. An easy way to save money and have ultimate control over what fertilizers and pest remedies are used on fruits and vegetables is to grow them yourself. Save hundreds on salad greens, tomatoes, potatoes, and strawberries. Plus, a home garden offers the convenience of fresh produce close by when it’s needed. ❖ Do an energy audit. Your home is probably wasting money right now. Simple improvements that make a home more efficient can save the average homeowner considerably. Caulking, sealing windows, ensuring heating and cooling systems are working efficiently and a load of other minor repairs can save on energy costs. Additionally, you may be eligible for home tax credits. ❖

MONEY MATTERS 2015

HOW YOU CAN

FINANCE

HOME IMPROVEMENT PROJECTS

any homeowners recognize that improving and maintaining a property makes a home more livable for its inhabitants and more attractive to prospective buyers when the time comes to erect a For Sale sign in the front yard. But a well-maintained home also provides additional benefits. According to the United States Department of Housing and Urban Development, home improvements not only raise the values of individual homes, but also raise neighborhood standards as well. Home improvements can create jobs and help local communities flourish economically.

MONEY MATTERS 2015

And yet, home improvement projects can be expensive whether homeowners hire professionals or tackle renovation projects on their own. The following are a handful of options homeowners can consider as they look for ways to finance renovation projects. Mortgage refinancing: Some homeowners tap into their home equity to cover home remodeling projects. Refinancing a mortgage means paying off the debt owed and starting over with a completely new loan. Refinancing comes with various fees and can cost between 3 and 6 percent of the loan’s principal.

Home equity loans and lines of credit: Both of these options are commonly referred to as second mortgages. When homeowners apply for home equity loans or lines of credit, they are borrowing against the equity value in their homes. A home equity loan is a term, or closedend, loan. It is a one-time sum that will be paid off over a set amount of time with a fixed interest rate and the same payment each month. This is a one-time loan from which a person cannot borrow further. A home equity line of credit, or HELOC, is like having a credit card. It’s possible to borrow a certain amount for the life of the

loan, which is a set time specified by the lender. During this time, homeowners can withdraw money as it is needed up to the value of the line of credit. HELOCs typically have a variable interest rate that fluctuates and payments can vary depending on the amount of money borrowed and the current interest rates. Credit cards: Credit cards are an option when improvements are not expensive. Individuals with excellent credit ratings may qualify for cards with a no-interest introductory periods of several months or more. These cards can be a good way to pay off moderate improvements in a short amount of time. Fix-Up Home Improvement Loan: This loan is a statewide program through Minnesota Housing Finance Agency that was established to encourage and support the preservation of existing housing. The program provides financing to improve the basic livability and/or energy efficiency of the borrower’s home. Key features include affordable, fixed interest rates with lower interest rate for energy conservation and accessibility improvements; higher loan-to-value ratio on secured loans than traditional loan products; longer repayment terms mean lower payments; hire a contractor or do the work yourself. Certain restrictions apply. Dreaming about a fixer-upper? Residential Rehabilitation Mortgage: If you are thinking about

purchasing a home that needs renovation, a rehabilitation mortgage may be a great home financing option for you. Rehab loans are intended for the repair of single family properties and are an important tool for community and neighborhood revitalization. Key features include: refinancing available after one year or after completion of project; have the option to do-it-yourself or hire a contractor; quick closing possible. At United Community Bank, we strive to match our customers’ needs with the best home improvement

financing available. We offer all the options listed here (and more) to help you achieve your remodeling goals. Because we are your neighbors, we care about improving the quality of housing in our area and will work with you and your unique situation. Ready to discuss your plans? Come visit with one of our lenders today! All loans are subject to credit and underwriting approval. Other terms and conditions may apply. Learn more at www.ucbankmn.com. United Community Bank NMLS 421829 ❖

Here for all of your Here Here for for all all of of your your

HOME IMPROVEMENT FINANCING HOME IMPROVEMENT HOME IMPROVEMENT FINANCING FINANCING See back cover See back cover See back cover

www.ucbankmn.com www.ucbankmn.com www.ucbankmn.com 001214364r1

MONEY MATTERS 2015

HOW TO EASILY GROW YOUR

SAVINGS

ne of the keys to successfully managing money is to save money. Conventional financial wisdom recommends men and women have between three and four month’s worth of earnings in their savings accounts to cover themselves in case of an emergency. But many people live paycheck to paycheck, while others are mired in debt. A 2013 survey from BankRate. com found roughly three-quarters of Americans have little emergency savings. Many working professionals find it hard to save any money once they have paid their monthly bills, including home expenses, child care and other common expenses. Although many Canadians are not saving enough, there seems to be a silver lining with regard to money management in that part of North America. The percentage of people who claimed they could not save dropped from 28 percent in 2012 to 17 percent in 2013, according to a BMO Financial Group report on household savings. Statistics Canada reported that the household saving rate rose to 5.4 percent in the third quarter of 2013, which is up from 5 percent in 2012. Financial analysts point to consumer trends among younger generations as one possible cause of the dwindling emphasis on saving money. Previous generations were taught the benefits of saving and being frugal, but nowadays many people struggle

to distinguish between necessities and luxuries. More readily available access to credit and a more materialistic culture may also be contributing to fewer dollars being saved. While saving may seem like an uphill battle, a little saving can go a long way. Explore these relatively painless ways to cut back and save more money. ❖ Do it yourself. Make a list of all the service providers used - from manicurists to hair stylists to lawncare professionals - and figure out where cuts can be made. Doing all or a portion of the work yourself can save a considerable amount of money. Do your own weeding and edging, only paying a landscaper to perform the more time consuming task of mowing the lawn. Skip an in-salon coloring treatment for an at-home application. Spend a day preparing meals for the week and eliminate much of your dining out expenses or fast food excursions. ❖ Review your shopping cart. Impulse buys can bust budgets. When grocery shopping, take some time before getting in line to review your potential purchases. Compare items against your list and figure out if any items can go back on the shelf. Do the same when shopping online. Before you proceed to checkout, review items in your cart. Chances are you can delete one or two from the list. ❖ Consider new stores. If you find yourself spending more than you

feel is necessary when shopping, look for new stores. Smaller markets may offer produce and other items at a fraction of the cost of large chain stores. Instead of doing all of your shopping in one place, shop around and buy items where they are the least expensive. For example, you may find paper products are more affordable at a pharmacy than at the supermarket. ❖ Learn to coupon effectively. Although you need not go to extremes, use coupons when shopping and learn how to pair sales with coupons to earn even greater discounts. Many blogs and websites help make the process easier, telling you when and where to clip coupons. Sometimes you can print coupons directly online or load discounts to a shopper loyalty card. ❖ Scale back on certain services. Assess your lifestyle to determine which services you can live without. If you rarely watch television, you may be able to reduce your cable or satellite package. Figure out if bundling services really does save you money. Add up how many minutes you use on mobile phone plans as well as the amount of data. You might find that you do not need the biggest phone plan after all. Saving does not have to be challenging. Opportunities to save money present themselves at every turn. Master the little ways to shave off expenses and grow your savings. ❖

MONEY MATTERS 2015

STEPS INVOLVED WITH

ESTATE PLANNING A

lthough inevitable, death is an emotional subject that’s difficult to discuss. While estate planning can make people uncomfortable, it is an essential part of securing assets for future generations and can make a death in the family easier for loved ones to handle. Estate planning is an umbrella term that refers to a host of things that must be done prior to a person’s death, including writing a will and even making funeral arrangements. Estate planning attempts to eliminate financial uncertainties and maximize the value of an estate, and allows men and women to state their wishes with regard to long-term healthcare and guardianship for their children. When done right, estate planning can prevent family feuds and ensure that the deceased’s estate stays in the hands of family rather than being relegated to the government. Estate planning can be a complex process, so men and women should seek help to ensure the process goes smoothly. Getting started Estate planning should begin early in a person’s life, especially for young parents. It’s easy to talk about saving for a home or retirement, but it’s not so simple to discuss who will care

MONEY MATTERS 2015

The will A will is an important component of estate planning. Without clearly and legally spelling out your wishes, there is no guarantee that those wishes will be honored. It will be up to a state or province to make potentially lifealtering decisions that can impact your surviving family members, and the only way to ensure your wishes will be carried out is to put them into a will. Although men and women can write their own wills, many people prefer to seek the assistance of an attorney, who can make sure all necessary details are included in the will. Medical directives In addition to a will, estate planning includes your wishes if you become incapacitated or suffer from a serious medical condition that precludes you from making decisions about your care and finances. Spouses can be named to make important health decisions, but you may want to indicate

other information, such as life support measures or organ donation, as well. If you have strong opinions on treatment, medical directives and living wills are a necessity. Funeral arrangements Another aspect of estate planning concerns funeral arrangements. Many people prefer to make their own funeral and burial plans so that these heart-wrenching decisions do not fall on the shoulders of grieving family members. Funeral planning may

Charitable giving Naming a nonprofit or a community foundation in your will can provide the resources to advance education, build houses, improve children’s health, help families thrive and more. Here are some simple ways to leave a charitable gift: Make sure you have an up-todate will (or living trust) that reflects your charitable objectives. Without these documents, you surrender control of your property and assets to the

Estate planning can be a complex process, so men and women should seek help to ensure the process goes smoothly include choosing a burial plot, selecting a casket, indicating cremation, and paying for everything in advance so there is no financial burden on surviving family members. According to the funeral planning website Efuneral.com, the average cost of a funeral in the United States in 2012 was more than $8,500 for a burial service and $3,700 for a cremation. That’s a considerable expense that you may not want surviving family members to pay. Estate planning is a process that is difficult to discuss, but one that is essential to maximize your assets and ensure your end-of-life wishes are honored.

courts. Contact your financial advisor (a financial planner, lawyer or accountant) and ask for help in establishing a charitable gift. Think beyond cash—you can leave stocks, bonds, real estate, insurance policies and personal property to charitable organizations. Make your preferred charity a beneficiary of your life insurance, pension plan or IRA. Contact your favorite charity to begin the conversation on how to achieve your charitable giving goals and help a nonprofit extend its mission for greater benefit to your community. ❖

001212088r2

for your children should you die while they are still minors. Those who are not able to sort through these answers on their own should enlist the help of an attorney or a financial adviser, both of whom can take some of the emotion out of the discussion and put it in more practical terms.

MONEY MATTERS 2015

BANKRUPTCY: IS IT YOUR BEST OPTION? U

nfortunately, nobody gets off the hook. Every year, we must do our civic duty and declare our income. While some of us prefer to sit down and struggle with all those little boxes and blanks as best we can, others simply entrust the task to tax specialists. So just when, exactly, is it worthwhile to ask a tax professional for help? The decision to file for bankruptcy is never easy. A last resort for people struggling financially, bankruptcy is an option for certain people who are unable to pay their outstanding debts. The decision of whether or not to file for bankruptcy is more complicated than some people may know. Bankruptcy won’t wipe your financial slate clean, and it can have a lasting impact on your credit rating that can make it difficult to get back on your financial feet down the road. So before filing for bankruptcy, it’s best that men and women consider the following factors so they make the most informed decision possible. ❖ Eligibility: There are rules regarding eligibility to file for bankruptcy. Simply being in debt does not make a personal eligible to file for bankruptcy. Income is one of the factors that determines bankruptcy eligibility. People who have sufficient income to pay their debts often do not qualify for Chapter 7 bankruptcy, which is the type of bankruptcy wherein a trustee can cancel an individual’s debts. Past history is also considered when determining eligibility, as men and women who have

MONEY MATTERS 2015

received a bankruptcy discharge in their recent past are typically ineligible to file again. ❖ Financial outlook: The impact of filing for bankruptcy is anything but temporary. Bankruptcy stays on your credit report for years, which can make it difficult to rent a new apartment or secure a bank loan for a new home or automobile. Even if you are able to secure such loans, expect the interest rate to be significantly higher if you have a bankruptcy in your recent past. So before filing for bankruptcy, consider your financial outlook for the years ahead. For example, if you are on the cusp of graduating college or landing a more lucrative job, then you may want to be patient and persevere through your current financial struggles rather than make a decision that will have a negative impact on your finances for years to come. ❖ Types of debt: Even if a judge discharges your debt, that does not necessarily mean you won’t still

have debts to pay. Bankruptcy only discharges unsecured debt, which includes credit card balances and medical bills. Secured debt, such as student loans and child support that is an arrears, must still be paid even after bankruptcy has been discharged. If secured debt is the albatross hanging over your head, then you will need to find another way aside from bankruptcy to solve your financial problems. ❖ Guilt: Though it may sound silly to people buried in financial debt, some men and women who file for bankruptcy are ashamed when their bankruptcy is discharged. Guilt about not paying your bills is a very really thing, so don’t be quick to discount the emotional toll that filing for bankruptcy can take on you. Filing for bankruptcy can help men and women who are struggling financially get back on the right track. But bankruptcy is not the best solution for everyone ❖

EXPLAINING 401(K) FEES

any men and women are aware of the importance of retirement planning, and that awareness leads many to enroll in employer-sponsored 401(k) programs. When perusing their quarterly statements, men and women may notice they’re being charged certain fees, which can add up over time, prompting some investors to wonder just what they are paying for. ❖ Individual fees: Individual fees may or may not be charged each quarter, as these fees are typically only instituted when the account holder initiates certain processes, such as taking out a loan on his or her 401(k). Such actions incur fees, and it’s important that investors know just how much those fees are

before taking any actions with regard to their accounts. ❖ Investment fees: Investment fees, sometimes referred to as investment management fees, tend to be the most expensive fees. These are the fees you are paying the company who handles your 401(k) to manage your funds, and they typically are assessed as a percentage of assets invested, meaning the more your 401(k) grows, the more you will pay in investment fees. These fees are automatically deducted from your investment returns. ❖ Administration fees: Typically noted as plan administration fees on your quarterly statements, administration fees are the costs associated

with the day-to-day operation of your plan. Record keeping, accounting, legal and trustee services are all paid for under the umbrella of administration fees. Account holders now get more bang for their bucks with regard to administration fees, which typically cover electronic access to plan information, daily valuation and online transactions in addition to the services that have been provided for years. When considering fees associated with their 401(k) retirement plans, it’s important that investors recognize these fees will escalate as their investment returns increase. Recognizing that and budgeting for such fees is an important part of retirement planning. ❖

001214320r1

When it comes to remodeling, buying, or reﬁnancing,

DON’T SETTLE FOR LESS

You deserve:

• more ﬁnancial planning resources • more creative solutions • more local branches • more investment in the community • more commitment to your ﬁnancial goals • and the MOST experienced lenders

PERHAM

LORI D. MATTFELD NMLS ID# 480590

lorim@ucbankmn.com | 218.346.9735

RYAN A. RUSTAD NMLS ID# 460590

ryanr@ucbankmn.com | 218.346.9749

TESSA FORMANEK NMLS ID# 480585

MHFA Fix-Up Fund Specialist

tessaf@ucbankmn.com | 218.346.9752

FRAZEE

ASHLEY RENOLLET NMLS ID# 1065553

PERRY COLEMAN NMLS ID# 809531

perryc@ucbankmn.com | 218.346.9774

001214371r1

ashleyr@ucbankmn.com | 218.346.9725

DENT

Perham | Dent | Frazee