6 Basic Retirement Guidelines from First Bank & Trust

Here are six basic guidelines to keep in mind when developing your personal retirement strategy.

1. Pay Yourself First. Establish a dollar amount you can save comfortably every month. Always remember, you are entitled to keep a portion of what you earn.

2. Don't Bank on Your House for Retirement Income. A house is primarily a home... not an investment for your retirement. While you may eventually trade down when you retire, consider the equity in your home an emergency reserve, not a primary source of income.

3. One Good Place to Save for Retirement Is a Company Retirement Plan. Remember to consider other tax-advantaged savings vehicles as well.

4. Make Retirement Your First Savings. If your disposable income is limited, save money in your retirement plan before funding long-term goals such as your child's college education. Remember, your retirement is the largest expense you'll ever have to fund. Use our retirement calculator to see how much you should be saving each month.

5. Avoid Taking a Retirement Plan Distribution before Retirement. Transfer your plan's savings to an IRA or a new company retirement plan if you change jobs. Don't consider withdrawing money until you've exhausted all other possibilities.

6. The Best Time to Start Saving for Your Retirement Is Right Now. Accumulating enough money to retire comfortably takes time.

Meet our team of Financial Advisors here.

A Basic Guide to Mortgage Loans

Q: What is a Mortgage Loan? A: A loan for the purchase or refinance of real property, secured by a lien on the property. Mortgage Loan Uses There are two main uses of a mortgage loan: to purchase a home or refinance a home. A purchase is straightforward; you borrow the amount of money requested at application, and then pay it back over time. The mortgage loan can be used to purchase the following: A primary residence (a home you are going to live in). A second home (a home that you will live in part of the year away from your primary residence) An investment property Refinancing is for borrowers that already own a home who want to change or improve their current mortgage loan. A person can refinance for the following purposes: To get a lower interest rate and/or shorten the term ( term : the time it takes to pay off the mortgage loan). To take cash out of their home for home improvements To take cash out their home to payoff and consolidate other debt

Get A Mortgage Despite Student Loan Debt

Many college grads put off buying a home simply because they face mountains of student debt. The amount people owe on student loans has increased astronomically in the past decade, breaking the $30,000 average per borrower in 2014. While many grads feel they can’t afford a home until they finish repaying these loans, but that isn’t actually always the case. In many instances, individuals and couples who owe student loans can still qualify for a mortgage. Take Stock of Finances & Calculate Your DTI One way lenders calculate whether you can afford a mortgage loan is by looking at how your total debt would compare to your current monthly income. This is known as your debt-to-income (DTI) ratio. Most lenders use a DTI threshold of 36%, meaning your payments on your debt, including student loans, credit card debt, and a mortgage, should be less than 36% of your total monthly income. For instance, if your total income each month is $5000 and you make payments of $250

Commercial Loans and The Community

We’ve all heard them. There is no shortage of cheesy jokes about bankers. By the very nature of their profession, they are easy prey to comedians. What you don’t hear very often is the truly good things community bankers do. Some success stories have enough “feel good” to supply the Hallmark Channel with a line up for six months. For the sake of explaining the impact of community banking, let’s take a look at the fictional town of East Park. East Park was a thriving downtown village in the 50’s, 60’s and the early 70’s. Huge buildings with charming storefronts lined the streets. At the heart of the downtown district was the local drug store where people sat on swivel chairs and caught up with each other over a grilled cheese sandwich and a root beer float. People liked that you could get your prescription, buy a birthday card and have lunch, all right there in downtown East Park. The demise of East Park’s downtown was something that took place over an extended period of time, but

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