One of the national banking trade groups is sponsoring a nationwide contest called, Lights, Camera, Save.  The contest solicits brief videos from high-school aged youth in which they communicate the value of sound money management; the value of saving money.  Entries are judged by a panel of film and financial experts and the final 8 videos are screened at a national banking convention and the 1,800 bankers attending the convention then vote to select the ultimate winner.  The prize is a scholarship, to help cover the cost of post-secondary education for the winning entrant.

I was at the convention last year when the 8 finalist’s videos were shown.  They were impressively done – solid production values, good scripts, well-acted – and all got the message across in a manner appropriate to the young people we are trying to reach.  We have reached out to the local high schools and hope that a few entries will come from the communities we serve.  I will again be attending the convention this winter and look forward to seeing what this year’s entries look like.  It is so important that our youth learn good money management habits and this contest is one more way we can help get information out to them.

It can be easy to take the freedoms we enjoy for granted.  But it is important to remember that those freedoms were established and are preserved only through the hard work and sacrifice of our Veterans.

In November, we observe Veteran’s Day and this year we will honor the Veterans among us in each of our branch offices.  We have been soliciting the names of Veterans from customers and employees for the past several weeks and those names will be displayed in our branches the week of November 10th.

Just last month our employees sent care packages to troops serving in Afghanistan.  One of our employees learned that a customer’s son is serving there and that certain food and personal items can be hard to find.  Our staff stepped up and contributed 20 boxes of items ranging from granola bars, soap, to dog treats that weighed over 160 pounds for the troops in Afghanistan.  We take access to these items for granted and it feels great to send a tangible thank you to those serving far from home.

Three years ago, when our branch in Kennebunk opened we dedicated the flagpole a local man who had died while serving in Iraq.  Again, a small gesture but an important way of remembering one who gave his life in service to our country.

In all of these instances we see a way to sincerely thank those who serve our country so nobly.  Please join me in thanking our Veterans this Veterans Day!

Citizenship is one of our 5 Core Values at Biddeford Savings.  We bring that value to life in many ways.  Members of our team are quite active in our communities, servings as board members and volunteers for a score of local organizations.  In fact, last year our staff members donated over 3,000 person hours in support of the good work being done to improve conditions in our communities.  Those of us who serve find the work engaging, challenging, and rewarding.

We help in other ways, too – here are a couple of recent examples.  In October, our employees asked to participate in Cans for a Cure, a fundraising effort to support breast cancer research. Our employees collected cans using specially coded bags from Hannaford and the deposit refund goes to Cans for a Cure and cancer research. The bank also donated another $300 to the cause.

Habitat for Humanity contacted one of our Branch Managers a few months ago, asking if we could help with one of their local projects.  In this case, they were planning to construct a home for a Veteran and they needed help clearing the site.  We asked our staff for volunteers and had nine employees spent the day clearing brush and shrubs from the site.  Construction will begin soon and a deserving Veteran will have a new home.

Throughout the year members of our staff continually look for ways to serve those in need in our communities.  It is just who we are.

What are a few of the most common errors people make when thinking about retirement?

• Failure to begin saving as soon as you begin working.
• Not having a plan.
• Not reviewing the plan semi-annually.
• Not evaluating your risk profile and matching your investments to it.
• Using the wrong mortality assumption when determining how much money you will need in retirement – either assuming you will live “forever” or will pass away too early – as this assumption has a huge impact on your plan.
• Forgetting to include Social Security in your plan.
• Forgetting to factor in mortgage or student debts as a retirement cost.

If you can keep these items in mind while developing and managing your retirement plan, you will greatly improve your chances of having a financially secure retirement. Good luck!

Okay, I have started saving. I have a good plan, now I can just coast until retirement, right?

If you guessed, “Wrong” you are right. A retirement plan, like a relationship or a garden, requires tending. Semi-annual reviews of your investments and your plan are a good idea. As your plans for retirement become clearer you will be better able to assess whether or not the path you are on is working.

Where you decide to live in retirement has a huge impact on how much money you will need. Marriage, children, divorce, and inheritance can also have a significant impact on your plan. If you are overseeing the investments in your account, you will need to keep up with interest rates and the stock market so that you can properly manage your money.

Things do change over time. For instance, as you near retirement you will likely want to have a more conservative investment portfolio than you had as a young person. If you prefer, you can have professionals manage your retirement funds; there are scores of options for that and, again, you should consult with family, friends, and trusted advisors to find the right manager for you and your retirement.

Once you have started saving money it is important to create a plan for yourself. You will need to think about such things as; when do I want to retire, what will it cost me to live the type of retirement I desire (where do I want to live, how much travel do I wish to do, etc.), how long will I likely live in retirement (we are generally living longer than our grandparents did/will and you need to plan for that, too).

Part of the planning process is deciding how you will invest your nest egg; insured bank accounts (IRAs) or in the stock market? That will certainly affect the rate at which your money grows but some investments also carry much more risk. You have to determine how much risk you are comfortable with. It will require some time and effort to pull together and enter the information needed to develop a plan; but it is well worth the effort.

As I mentioned last week, there are great free online resources to help with developing a plan; socialsecurity.gov, aarp.org, and fidelity.com are three that come to mind. You also have the option of working with paid planners to do this; they have the experience and knowledge to help you develop a good retirement plan. Family, friends, or your bank can provide you with referrals to qualified planners. Again, the key is to get started developing a sound retirement plan.

If you are asking, “When should I start saving for my retirement?” my answer would be, “You are already too late!” While you can take steps to catch up, the reality is that you simply cannot begin saving too soon.

My daughter just finished college and got her first job, I told her that she will be well served by participating in her employer’s retirement plan as soon as she qualifies. She is 22 years old and doesn’t really know what she will be when she finishes growing up so establishing good savings habits is sufficient, for the moment. Clearly, at some point she will need to have a plan but that can come in due time.

How much should you save? Well, many employers offer what are called matching contributions – if you save 4% of your pay they may contribute 2% as well. At a minimum, make sure you are taking advantage of your employers match to the fullest extent possible. If you can afford to do more, go for it.

Smaller employers do not always offer retirement plans, in which case, you are on your own. Take advantage of IRAs (Individual Retirement Accounts) to begin setting money aside. These retirement savings options may come with tax advantages, which further increase the real rate of return. There are a number of good web sites out on the web to help you get educated on retirement planning; socialsecurity.gov, aarp.org, fidelity.com, and bank web sites are just a few of the places to look. Of course, talking with a Banker is another way to get good information about retirement planning. The keys are to begin saving and educating yourself about retirement.

Just like consumers, business owners have a range of checking account options available to them. Oftentimes, small businesses may run the funds through their personal account. However, this is not the best option since it sometimes becomes very difficult to keep personal and business transactions separate. This can especially become an issue when it is time to file tax returns!

So, my advice is to open a business account as soon as you can. It will help immeasurably with record keeping and will help you keep track of how your business is doing. Most businesses in Maine can handle their finances with one, simple checking account. But some businesses choose to open a second account for payroll. It can be easier to track which checks have been cashed.

A business which accumulates cash, whether over time or seasonally, can open an interest bearing account – which can either be a checking account or a money market account. Typically, a money market account earns a higher rate of interest but has a limit on the number of transactions allowed each month. Very large businesses may opt for a more sophisticated cash management arrangement with their bank. In such an arrangement the bank works with the business to speed processing of receipts and to slow the cashing of checks written to vendors. There are fees associated with these types of account, which are typically offered by the larger banks. Regardless of the type of account you establish for your business it is critical that the statement is balanced each month. Regular balancing of your account is the easiest way to ensure that only legitimate activities are being conducted. Having a business checking account is important, but care must be taken to ensure the account is set up and operating properly. We would be happy to discuss your business checking needs with you and help you on your path to prosperity.

 

Back in the day, most banks offered consumers a checking account with the emphasis on “a” which means one size did fit all.  Today, banks of all sizes offer a sometimes dizzying array of different checking accounts.  Some have fees, some pay interest, some are free, and others are “free”. There are accounts that require you receive your statements via email, accounts on which you are not allowed to write checks, and accounts that offer free ATM usage around the world.  So, how does a person figure out which account is right for them?

Start by thinking about how you will use the account – do you have direct deposit of payroll or some other monthly income, will you be writing checks or using your debit card and online bill payment features, is a printed statement necessary, and when and where do you use ATMs to get cash?

Another key data point is how much money you expect to leave on deposit.  At most banks today customers leaving larger balances earn a higher rate of interest on their funds and also receive more added perks, such as free ATM usage.  Once you have a general idea of which features and benefits are important to you, go to the bank’s website and see what they offer.  If you find the information confusing, stop by a convenient branch office and talk with a banker.  At Biddeford Savings, we will listen to your needs and match you up with the right account.  We can even help smooth your transition if you are switching banks.  But whichever bank you choose, remember over time your financial picture may change, so don’t hesitate to revisit your checking account choice from time to time and see what options matter most to you.