Flanagan State Bank’s Life Stage Strategies
By the time you have a family of your own, there will be accompanying expenses such as costs for various activities and lessons for your children, family vacations, saving for college educations or buying a new home. Throughout this time, you should regularly evaluate your progress towards achieving the financial goals you set earlier in your life and adjust your spending, budgeting and saving to make sure you stay on track. With all the demands a family places on your income, it is still important to build your long-term investments.
CAPS Planning Tip - At this stage of your life, you should be balancing your short-term goals (buying a house, eliminating installment debt, etc.) and long-term goals (college and retirement). There should be an emphasis on getting rid of any consumer debt (credit cards, personal loans, auto loans) and saving for retirement. Make sure you are on track for retirement before putting aside too much money for college.
Planning and discipline that determines what and how you spend contributes to your future financial success. Here are some tips Flanagan State Bank recommends for sound financial management during this demanding time of your life.
With competitive rates, experienced lending professionals and local decision-making, you’ll be sure
to find a loan at Flanagan State Bank that meets your needs. To apply for a mortgage or consumer loan now, click on the links below, or stop by and talk with one of our lending officers.
Mortgage loans– We have a highly trained staff of mortgage loan officers who will offer good counsel along with finding you the right mortgage for your needs. We can usually get your loan closed in around 30 to 45 days.
Consumer/installment loans – Contact your local branch to discuss borrowing money for automobile or other unexpected situations that come up. Collateral for a personal loan might be a car title, a CD or other property.
529 Educational Savings Plan - 529 Plans offer the investor tax-free savings if the money is used for qualified education expenses. Flanagan State Bank, with its partnership with CAPS Financial Group, can explain how 529 Plans can help you save tax efficiently for college. Contact Matthew Schwerin at 309-661-6333 for details.
Bank CD product - CD’s can be purchased for as little as $500 and terms range from 30 days to 5 years. Penalties apply for early withdrawal.
Coverdell Education Savings Account Education IRA this account has tax advantages in saving for college, but you are limited to $500 in contributions each year.
U.S. Government EE Savings Bonds - EE Bonds are reliable, low-risk government-backed savings products that you can use toward financing education and other special events. These are available at Flanagan State Bank.
Evaluate your health insurance options – If your family is generally healthy and the children are older, you may want to think about opening a Health Savings Account. Health Savings Accounts (HSAs) are tax-exempt accounts where funds grow to pay for eligible medical expenses. HSAs give control back to consumers and assist in lowering healthcare costs. Unused funds can accumulate over time and give you an extra nest egg when retirement rolls around. To get more information on Health Savings Accounts, click here.*
*You must have a high deductible health plan (HDHP) to open a Health Savings Account. Visit with Flanagan State Bank or your insurance provider for more details.
Rent a safe deposit box – This a convenient place to store important items that would be difficult or impossible to replace. Additionally, some insurance companies charge lower insurance premiums on valuables kept in a bank's safe deposit box instead of at home.
Establish wills. Now that you have started a family, it is important that if something should happen to you that your wishes for your assets and your children are communicated and followed. A will is an easy way to make your wishes known.
For help determining the best accounts and products for sound and productive money management during your Career Focused Life Stage, please contact us or CAPS Financial Group at 309-661-6333.