Monthly Archives: January 2016

Retirement Saving How-To

Retirement

Putnam Bank is the place to begin all your savings ventures! If you’re starting a new career or beginning a new chapter of life, perhaps it’s time to reevaluate your retirement plan! Here are some quick tips to keep you on track for a successful retirement lifestyle.

A successful savings plan involves extensive planning and lots of patience. Once accomplished; however, you gain the benefit of watching your finances work for you! The average age of retirement is climbing. Currently averaging at age 62, reports speculate that the average retirement age may increase to 75 for recent graduates facing mountains of student debt. As in any successful game plan, the key is to have an effective and feasible strategy, here’s how to begin.

Start Saving Now

Even if it’s just a little at a time, saving 6% of your earnings annually can begin to set you up for a lofty retirement. Did you know if you save even 10% of your annual income you could save $1,555,000 and retire at age 70? (Based off of median salary of $45,478 and $35,051 in student loan debt.) Dig a little deeper and see what savings potential you have!

Hop on that 401k ASAP

Tucking away pre-tax money is like being asked if you want a puppy as a child, the answer is always yes! By using this valuable system you are able to put a percentage of your annual salary away without having to pay taxes on it that year. Generally employers may match a percentage of your contribution, so if you put 6% of a $45,000 salary ($2,700) into a 401(k), and your company contributes 3% additionally ($1,350), you would yield a yearly contribution of $4050 towards your retirement! Another perk of utilizing a 401(k) is the change in your taxable income. The amount that you invest in your 401(k) is deducted from your taxable income reducing the final amount you pay on your yearly income tax. (Example: $45,000 – $4050 = $40,950)

Grow a Diverse Portfolio

Ensuring your finances’ diversity is a large component to a successful retirement. The saying “Don’t put all your eggs in one basket,” is the epitome of investing. By creating an investment plan that entails stocks, bonds, equities and more you are able to gain the benefits and financial buffers that each individual product provides. Additionally this allows you to optimize your savings, ensuring the gain and profit generated from each asset goes towards your growing retirement fund.

These simple steps will get you on your way to saving for a successful retirement, no matter the age! Retirement can be exciting. Did you know your retirement fund has the capability to replenish itself? Yes, it’s true! By saving over $1,000,000 throughout your life and taking out only $40,000 a year upon retirement, if the interest rate is 4% or better, the fund will be able to continue replenishing itself.

If you would like to look at your retirement savings options we’d love to help you! With so many structures and factors we’ll help you navigate the best path to a financially secure savings. Give us a call or stop by Putnam Bank today to get started planning your retirement!

Putnam Bank
Member FDIC, Equal Housing Lender

Basketball Budgeting

basketball

No matter where you are in your journey to financial freedom, a budget will help elevate you to a higher level of financial understanding. By calculating a budget and determining your monthly or yearly goals you can create benchmarks to measure your path to success.

Now that basketball season is in full swing, there are many comparisons to the sport that can apply to building your own personal budget. From knowing when to pass an expense, to hitting a three-pointer with an unexpected bonus, budgeting is a lot like basketball. Learn how to win at structuring your finances with this helpful game plan from Putnam Bank.

Brush up on your coaching.

Every team is built around the choices of its coach, just as your budget is. The coach selects the players based off merit, potential, and cohesiveness to create a well-rounded team structure. You decide what direction your budget will take you. If one piece isn’t working the way you desire, then it is your responsibility to make a change.

Recruit your team.

Every team has three key player types, centers, forwards, and guards. The center is going to be your all-around player in the middle of all the action just like your income. In your budget, this income is going to be after both taxes and your designated savings, this is your center player. Now those savings, giving you a financial buffer, are acting as your guard. Whether it’s a retirement savings, emergency fund, or personal investments, your guard player covers it all. Something additionally has to be driving your budget to financial success, and that is where your forward comes in. Spending is the determining factor to the successfulness of your budget. Just as in basketball, if no one takes the ball up the court, then there is no potential to score. By managing your spending, you create momentum through your forward player to move your money in a positive direction.

Keep your elbows in.

Every game comes with rules to keep the players safe.  Staying within these guidelines will help protect you from receiving any of the following unwanted fouls in the realms of finances.

Foul 1: Spending more than you earn.     Penalty: Paying interest and losing savings capabilities.

Foul 2: Not having a savings plan.             Penalty: No structure for emergencies or retirement.

Foul 3: Carrying bad credit.                        Penalty: Added obstacles in gaining financial freedom.

Just as in basketball, practicing the fundamentals will push you to better your skills. If you work to create a successful budget based on what you can afford, your consistent monthly expenses, moderated spending, and a sound investment plan, you will be a winning coach in no time.

Starting a savings account with Putnam Bank is the ideal first play to get you on track to success, call 1-800-377-4424 or stop by a branch location today to find the best account type for you and your family!

Putnam Bank
Member FDIC, Equal Housing Lender

 

Start 2016 with Random Acts of Kindness

Random Acts of Kindness

At Putnam Bank we believe in the power of giving, and the season of gift giving doesn’t have to come to an end just because December did! No matter how small of a gesture, each can offer an incredible impact on the life of another. Try some of these simple acts and see how you can affect the life of another person. Challenge yourself this year to do more kind acts, random or not. Get your friends and family involved

  1. Pay for the person’s food or beverage behind you in line.
  2. Write a letter to a soldier.
  3. Donate new and used toys to daycares or children’s hospitals.
  4. Cook a meal for a family who may be without.
  5. Give a good server the largest tip you can afford.
  6. Shovel snow or do other yard work for your neighbor.
  7. Pick up trash when you’re out for a walk.
  8. Offer assistance to a charitable organization with your time and skills.
  9. Bake treats for your area school’s teachers.
  10. Visit a nursing home and spend time with the residents.

In addition to being kinder in 2016 you may find yourself becoming happier as well! With so many opportunities to make a difference, this list will help you get started! Add your own acts of kindness and see what you can do to better the lives of others this year.

Putnam Bank is the institution for all your charitable needs, whether its remaining anonymous in donations, arranging monthly transfers, or dispensing cash for personal giving, we have you covered! If you’re looking for an organization to support, then check out our community page at putnambank.com.

Putnam Bank
Member FDIC, Equal Housing Lender

NEW CARD – NEW PIN – NEW SECURITY

Debit Cards

Chip Technology makes an already secure card even safer! The new Mastercard® Chip Technology keeps your purchases private while offering the flexibility of a magnetic strip, making purchasing easy from wherever you are.

With the excitement of this big change we know you have some questions, and we’d like to help answer them!

Q: How is this card more secure?

A: The new debit cards feature Mastercard® Chip Technology, which generates a separate code for each purchase you make. This individualized code makes it nearly impossible for potential criminals to gain your information through in-store purchases.

Q: Does this change anything with my accounts?

A: This card will act as a replacement for any debit cards you currently have with us. Your previous card will be deactivated approximately 30 days after you receive your new card. If you have any reoccurring bills set-up using auto-pay, your payments should continue, but still touch base with your vendors to ensure a smooth transition.

Q: What do I do with my old debit card(s)?

A: After you have activated your new chip card shred or cut your old debit card into pieces and then dispose of responsibly, OR bring your old card to Putnam Bank and we will dispose of it for you!

Q: Can I use this card for purchases if it is only associated with a savings account?

A: If you card is attached to a savings account only, and not a checking account, then it will act as your ATM card, and continue to be limited for cash withdrawal purposes.

 Q: Where can I use my card?

A: The United States has begun adapting chip technology across the country, but many businesses don’t yet have the processing equipment. If businesses are still using traditional card processors you may also use the magnetic strip on the back of your card to pay for purchases. Chip technology is now accepted in over 80 countries, so wherever you’re going your card can go with you!

Enjoy the security of your new Putnam Bank debit card with added Mastercard® Chip Technology! If you have additional questions stop by or call (800) 377-4424 today!

Putnam Bank
Member FDIC, Equal Housing Lender