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Flanagan State Bank’s Life Stage Strategies


Financial advice for young adults entering the work force

Laying the right foundation as you start your career is the key to future financial success, and at this
life stage, TIME is your greatest asset. Consider that each dollar you save in your 20s can be worth ten times
as much as one saved in your 40s. Through the magical power of compounding, the beginning of your working life is the prime time to start saving towards retirement—even though many people don’t want to think about, or worse yet, act on this principle.

Flanagan State Bank offers financial planning advice through CAPS Financial Group. CAPS offers fee-only financial advice for all stages of your life.

CAPS Planning Tip - A plan at this stage would focus on identifying your goals, developing good habits, and setting a course to reach your goals.

During this time, young adults have the exciting task of learning how to manage the spending and saving of their money within the constraints of their income. Here are some steps to take now to put your financial
future on track:

Your short term goals of less than five years might encompass a wedding, honeymoon, furniture or a new car. Medium term goals could include the purchase of a home and financing your future children’s college education, followed by long-term retirement goals. These goals will help you determine how to spend and save your money.
2. Build assets through saving at least 10-15 percent of your income It may be wise to invest in CDs or money market funds for your short term goals and the stock market for your longer term goals. Historically, the stock market has outperformed other types of investments over comparable time periods, but it’s not for the faint of heart. You may also want to join a 401K plan if available from your employer or open up an IRA account. Flanagan State Bank can help compound your savings with an account that’s right for you:

Money Market Account– Minimum to open is $2,500 and interest is compounded and paid quarterly. Service charges apply to balances under $1,000. Quarterly bank statement without check images.

N.O.W. Checking– Minimum to open is $1,000 and interest is paid monthly. Service charges apply to balances under $1,000. Monthly bank statement with check images.

Certificate of Deposit (CD)– CD’s can be purchased for as little as $500 and terms range from 30 days to 5 years. Penalties apply for early withdrawal. 

Traditional or Roth IRA – IRA’s are tax-advantaged vehicles that allow you to save for retirement. Depending on your situation a traditional or Roth IRA could be right for you. For bank CD IRA products, contact your local banking office. For non-bank IRA products, contact CAPS Financial Group to see what type of investment suits your needs. 

Click here for current rates on all deposit products.

3. Establish an emergency fund A good guide is to save three to six months worth of living expenses in a separate bank account that could be easily accessed in the case of job loss or uncovered medical expenses. Try to resist the temptation to use the money for anything else.

Flanagan State Bank recommends these accounts for the establishment of your emergency fund:

Regular Savings– Minimum to open is $50. For balances under $50, there is a $3 service charge per month. Accounts for minors will not incur a low balance service charge.

Money Market Account– Minimum to open is $2,500 and interest is compounded and paid quarterly. Service charges apply to balances under $1,000. Quarterly bank statement without check images.

4. Conserve time, money and paper with Flanagan State Bank’s convenient checking accounts with online banking and bill pay and no-charge ATM services You’ll reduce the time it takes to pay your bills and save on the expense of printed paper checks and postage while helping the environment as well.

Internet banking– Flanagan State Bank offers free internet banking that allows you to view bank statements and account history, as well as perform transfers between accounts.

Online Bill Pay– this free service allows you to pay bills online and set up automatic payments to occur at certain times of the month. Save time and money by not having to mail bills out.

5. Borrow wisely Avoid high-interest credit cards and pay off your credit card balance monthly. Work with Flanagan State Bank for your major lending needs including personal and automobile loans and home mortgages.

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 strive to close your loan in 30 to 45 days with NO surprises.

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.

6. Understand your credit reportYour financial behavior over the past seven years, including how much credit you have, how long you've had it and whether you pay your bills on time is information included in your credit report. Your credit report also carries your credit score ranked between 300 and 850 that many lenders use to decide whether you are creditworthy and will repay a loan. Your credit score can also influence the interest rate you pay. In many cases, the higher your score, the lower your interest rate.

Your credit score is available from the three credit reporting agencies:

For help determining the best accounts and products for sound and productive money management during your Getting Started Life Stage, please contact us or CAPS Financial Group at 309-661-6333.