Tuesday, May 25, 2021

Do You Know What It Takes to Work Towards a Secure Retirement?

Retirement - This is the stage of life many people DREAM about! What do you wish to do with your retirement? Travel, volunteer more for charities that mean something to you, buy a farm and focus on that more, spend more time with grandchildren; there are SO many incredible options. How will you spend your time? However you choose to spend your retirement, there's some work to do before you get there. Keep reading this week's blog to learn what it takes to work towards a SECURE retirement. For information on opening an IRA at the Lake of the Ozarks, call First Bank of the Lake today at (573) 348-2265.



Do You Know What It Takes to Work Towards a Secure Retirement?


Use this calculator to help you create your retirement plan. View your retirement savings balance and your withdrawals for each year until the end of your retirement. Social Security is calculated on a sliding scale based on your income. Including a non-working spouse in your plan increases your Social Security benefits up to, but not over, the maximum.


CALCULATE HERE


Definitions


Current age

Your current age.


Age at retirement

Age at which you plan to retire. This calculator assumes that the year you retire, you do not make any contributions to your retirement savings. For example, if you retire at age 65, your last contribution occurs when you are actually age 64. This calculator also assumes that you make your entire contribution at the end of each year.


Household income

Your total household income. If you are married, this should include your spouse's income.


Current retirement savings

Total amount that you currently have saved toward your retirement. Include all sources of retirement savings such as 401(k)s, IRAs and annuities.


Rate of return before retirement

This is the annual rate of return you expect from your retirement savings and investments. This should also be an after-tax rate of return if the majority of your retirement savings is not in a tax-deferred account such as a 403(b), 401(k), 457(b), annuity or IRA. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2020, had an annual compounded rate of return of 13.8%, including reinvestment of dividends. From January 1, 1971 to December 31st 2020, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.8% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.


Rate of return during retirement

This is the annual rate of return you expect from your savings and investments during retirement. This should also be an after-tax rate of return if the majority of your retirement savings is not in a tax-deferred account such as a 403(b), 401(k), 457(b), annuity or IRA. It is often lower than the return earned before retirement due to more conservative investment choices to help insure a steady flow of income. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2020, had an annual compounded rate of return of 13.8%, including reinvestment of dividends. From January 1, 1971 to December 31st 2020, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.8% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.


Percent of income to save

The percentage of your annual income you plan to contribute to your retirement savings. This should reflect the total you save toward your retirement. This should include any 403(b), 401(k), or 457(b) plans and your employer's contribution to these plans. It should also include any other retirement accounts such as an IRA or a Roth IRA and any retirement savings in non-retirement accounts. This calculator assumes that you make one annual contribution at the end of each year, and any withdrawals happen once per year at the end of the year.


Expected income increase

Annual percent increase you expect in your household income.


Years of retirement income

Total number of years you expect to use your retirement income.


Pre-retirement income desired in retirement

The percentage of your pre-retirement household income you think you will need in retirement. This amount is based on the household income earned during the year immediately before your retirement. You can change this amount to be as low as 40% and as high as 160%. The percentage should reflect an after-tax amount if the majority of your retirement savings is not in a tax-deferred savings account such as a 401(k), IRA or other tax-deferred account.


Expected rate of inflation

This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2020 the CPI has a long-term average of 2.9% annually. Over the last 40 years the highest CPI recorded was 13.5% in 1980. For 2020, the last full year available, the CPI was 1.2% annually as reported by the U.S. Bureau of Labor Statistics.

Married checkbox

Check this box if you are married. Married couples have a higher maximum Social Security benefit than single wage earners.


Include Social Security checkbox

Check this box if you wish to include Social Security benefits in your retirement planning. Social Security is based on a sliding scale depending on your income, how long you work and at what age you retire. Social Security benefits automatically increase each year based on increases in the Consumer Price Index. Including a spouse increases your Social Security benefits by 1.5 times your individual estimated benefit. Please note that this calculator assumes that only one of the spouses work. Benefits could be different if your spouse worked and earned a benefit higher than one half of your benefit. If you are a married couple, and both spouses work, you may need to run the calculation twice – once for each spouse and their respective income. This calculator provides only an estimate of your benefits.

The calculations use the 2021 FICA income limit of $142,800 with an annual maximum Social Security benefit of $37,776 ($3,148 per month) for a single person and 1.5 times this amount for a married couple. To receive the maximum benefit would require earning the maximum FICA income for nearly your entire career. You would also need to begin receiving benefits at your full retirement age of 66 or 67 (depending on your birthdate). This calculator rounds your age of full Social Security benefits to the next highest full year. If your birthdate is between 1955 and 1959 your actual full retirement age for Social Security is 66 plus two months for each year after 1955. Your actual benefit may be lower or higher depending on your work history and the complete compensation rules used by Social Security.



Have Any Questions On Retirement?

Speak with one of our friendly staff members today! We can be reached at the phone number listed below. You can also follow us on our social media channels listed below to stay up to date on our latest announcements and helpful financial products we feature each week. First Bank of the Lake puts YOU First!




First Bank of the Lake - Striving For Excellence
Member FDIC. 


Connect With Us On LinkedIn

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265

Tuesday, May 18, 2021

This Auto Calculator Can Help You Make An Educated Decision When It Comes To Buying A New Car

Who's ready to buy a NEW car? Whatever your reasons may be for buying a new car, whether you are:

  • Searching for something with better gas mileage
  • Trying to replace a car that has broken down
  • Searching for a truck or SUV with more storage
...this is the blog for you! Our auto loan experts at the Lake of the Ozarks are here to help you in any way we can with your financing. Keep reading this week's blog to learn all about the handy auto loan calculator we offer.


Auto Calculator

Use this calculator to help you determine whether you should take advantage of low interest financing or a manufacturer rebate. A rebate will reduce your auto loan balance, while low interest financing lowers your monthly payment. The best option depends on the price of the vehicle, the size of the rebate and the interest rates available for financing.

USE AUTO CALCULATOR HERE


Definitions

Total purchase price (before tax)

This is the total cost of your auto purchase. Include the cost of the vehicle, any additional options and any destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after-tax price.


Term in months

Number of months for your auto loan.


Cash down

Total amount of cash used in this purchase. The larger your cash down payment the smaller the loan you will need to finance this purchase.


Trade allowance

The total amount that you are given for any automobile that you trade-in as part of this purchase. In some states a trade-in can also reduce the amount of sales tax you will owe. See the definition for 'Sales tax deduction for trade-in' for more information on trade-in vehicles and sales tax.


Amount owed on trade

Total loan balance still outstanding on the trade-in.


Sales tax rate

Sales tax percentage rate charged on this purchase.


Traditional financing

The interest rate you may be able to receive from a bank, credit union or other lender. This is usually a higher interest rate than the manufacturer's low interest financing, but is often very competitive when used in combination with a manufacturer rebate. This calculator assumes that if you choose a manufacturer rebate you are not eligible for manufacturer low interest financing.


Low interest financing

The incentive interest rate you may be able to receive from an auto manufacturer. These rates are usually significantly below standard auto loan interest rates. Low interest financing can be as little as 0% per year. Most manufacturers allow you to choose either low interest financing or a manufacturer rebate, but not both. This calculator assumes that if you choose low interest financing you are not eligible for any manufacturer rebate.


Manufacturer rebate

A cash rebate paid by the auto manufacturer to you when you purchase a new vehicle. Most manufacturers allow you to choose either low interest financing or a manufacturer rebate, but not both.


No sales tax deduction for trade-in

If you live in a state where your sales tax is calculated on your full purchase price check this box. If this box is unchecked sales tax is calculated on the purchase price less trade-in. Currently California, the District of Columbia, Hawaii and Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.


Calculate sales tax before rebate

Some states will calculate sales tax on your purchase price before a manufacturer's rebate is applied. If your state calculates sales tax on the vehicle price before the rebate is applied, check this box.



Ready To Buy Your New Car?

First Bank of the Lake puts YOU first, in every aspect of our banking. For more information on our auto loans, call us today at the phone number listed below. Speak with one of our installment loan officers at the Lake of the Ozarks. While you're looking below, be sure to follow us on our social media channels listed below to stay up to date on our latest announcements. 




First Bank of the Lake - Striving For Excellence
Member FDIC. 


Connect With Us On LinkedIn

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265

Tuesday, May 11, 2021

Common Mortgage Terms to Know: Part 4

Who's considering buying their first home this year? If so, the process can be a little intimidating if you're new to the home buying process and if you don't have a kind mortgage lender at the Lake of the Ozarks to talk to. Mortgage terms can be confusing. Our bank at the Lake of the Ozarks is here to help with that! Keep reading this week's blog for more mortgage term definitions. If you have any questions about any of this OR you're searching for your dream home and have no idea where to start in terms of a home loan, call First Bank of the Lake today. We can be reached at (573) 348-2265. 



Common Mortgage Terms to Know: Part 4


Deed

The legal document conveying title to a real property.


Deed of Trust

An instrument used in many states in place of a mortgage. It is essentially an agreement between a lender and a borrower to give the property a neutral third party who will serve as a trustee. The trustee holds the property until the borrower pays off the debt. 


Default

The failure to perform an obligation as agreed in a contract.


Delinquency

A loan payment that is overdue but within the period allowed before actual default is declared.


DeMinimus PUD

A Planned Unit Development (PUD) in which the common property has less than a 2% influence upon the value of the premises. The 2% rule of thumb is calculated by dividing the dollar amount of amenities by the total number of units.


Department of Housing and Urban Development (HUD)

A governmental entity responsible for the implementation and administration of housing and urban development programs. HUD was established by the Housing and Urban Development Act of 1965 to supersede the Housing and Home Finance Agency.


Department of Veterans Affairs (VA)

A cabinet-level agency of the federal government. The Servicemen's Readjustment Act of 1944 authorized the agency to administer a variety of benefit programs designed to facilitate the adjustment of returning veterans to civilian life. Among the benefit programs is the VA Home Loan Guaranty program, which encourages mortgage lenders to offer long-term, no down payment financing to eligible veterans by partially guaranteeing the lender against loss upon foreclosure.


Deposit

A sum of money given to bind a sale of real estate. Also known as earnest money.


Depreciation

A loss of value in real property brought about by age, physical deterioration, functional or economic obsolescence.


Disclosure

Information relevant to specific transactions that is required by law.


Discount Point

A point paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.


Down Payment

Money paid to make up the difference between the purchase price and the mortgage amount.



Looking For Your Dream Home? First Bank of the Lake Puts You First.

We hope you found this blog enlightening and helpful when it comes to the home loan process. If you are searching for your dream home, connect with an experienced mortgage loan officer at the Lake of the Ozarks to get your questions answered about this process. No questions are off the table, ask away! We can be reached at the phone number listed below. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.




First Bank of the Lake - Striving For Excellence
Member FDIC. 


Connect With Us On LinkedIn

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265

Tuesday, May 4, 2021

Why Switching to First Bank of the Lake is Quick and Easy!

Are you tired of banking with your current bank? Are you searching for:

  • Better customer service?
  • More financial products to fit your lifestyle?
  • Online and mobile banking to make your life easier?

If so, this is the blog for you! Our bank at the Lake of the Ozarks is here for ALL your banking needs. First Bank of the Lake puts YOU first! Keep reading this week's blog to learn why switching to First Bank of the Lake is so quick and easy.



Don’t let the thought of switching banks stop you from better banking! Our simple Switch Kit will guide you through the process.


Follow these 5 simple steps and switch today.


Step 1: You decided to switch to First Bank of the Lake!

Now, let’s get started.


Step 2: Set up your new accounts with us!

Before you open your new First Bank of the Lake account, first learn more about your account choices.


When you’re ready to open your new account, we’ll help you choose the best account(s) for you, sign you up for online banking and order your debit card and checks.


Step 3: Stop using your old accounts.

Remember to leave sufficient funds to cover outstanding checks or auto payments.


Step 4: Set up your auto payments and deposits.

Complete the ‘Switch my Autopay’ Form and ‘Switch my Deposit’ Form included in the kit.


Step 5. Close your old account.

Confirm that all your checks have cleared and that all your auto payments and deposits have been processed. For your convenience, there is an ‘I’ve Switched Banks’ Form included in the Switch Kit to let your old bank know where you’re moving your account(s).


You’re just a few steps away from enjoying everything we have to offer.

We hope you will take advantage of our great products and services. If you have questions or need assistance, please contact us. We’re glad to help!



First Bank of the Lake Puts YOU First.

No one should have to put up with poor customer service from their bank. You should be able to work with a bank that not only treats you right but also has all the products that you actually need to fit your lifestyle! There are true benefits to having a "one-stop shop" type experience with a bank. Now that you've seen how easy this process truly is, give us a call. If you're ready to take that next step and bank with a bank that can deliver on what you're needing, call us at the number listed below. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.




First Bank of the Lake - Striving For Excellence
Member FDIC. 


Connect With Us On LinkedIn

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265

Mortgage Financing Options To Fit Your Needs: Part 1

Who's hoping to move to the Lake of the Ozarks soon? Ever since the pandemic started, this area's real estate market has boomed! If you're looking to move here, we encourage you to reach out to one of our experienced mortgage lenders at the Lake of the Ozarks. Keep reading this week's blog to learn about some of the mortgage financing options we offer to fit your needs! Call First Bank of the Lake today at (573) 348-2265.



Fixed Rate Mortgage

Planning to stay in your current home for a while and looking for stable monthly payments?

With a Fixed-Rate Mortgage, you’ll know exactly what your monthly principal and interest payments will be for the life of the loan. The interest is locked in, so you’ll have a consistent monthly payment and have the flexibility to choose the length of your loan. It’s a perfect solution if you plan to stay in your home for a long period of time and have the peace of mind knowing that your monthly payments won’t change.

Unlike an adjustable-rate mortgage (ARM), with rates that fluctuate over time, choosing a fixed-rate loan allows you to avoid unexpected increases in payment during the loan period. A fixed-rate mortgage’s consistent payment schedule gives you the ability to plan a budget and pay other expenses without jeopardizing your mortgage payment.

A variety of loan terms are available. The overall interest you pay is more over the life of the longer-term loan, but a short-term loan often has a higher monthly principal and interest payment.

Key Features:

  • A variety of loan terms are available.
  • Consistent payments for the life of the loan.
  • Low down payment options.
  • Single family loan amounts up to $510,400.
  • Attractive interest rates and low closing costs.

Let us help with a fixed-rate option that works best for your specific needs. Complete an application for a fixed-rate mortgage to Get Started today!!


Adjustable Rate Mortgage (ARM)

Are you a frequent mover or planning to be in your home for a short time? 

We here to help. ARMs can be a popular mortgage choice when interest rates are high, if you only plan to stay in your home for a few years, or if you plan to refinance down the road. Most ARM loans feature an initial rate period, during which the interest rate, principal and interest payments remain the same. Once the initial rate period expires, the interest rate will adjust once per year for the remainder of the loan term. The adjustments are based on a fluctuating index plus a margin. When the interest rate adjusts, your monthly payment will usually increase if rates go up or decrease if interest rates go down

Often, an ARM loan may have a lower starting principal and interest payment, but at the end of the ARM loan’s initial rate period, the interest rate and monthly principal and interest payment could go up. If that happens, you will need to be prepared to make bigger payments. To help avoid significant fluctuations, interest rate caps limit how much the interest rate can go up or down at each interest rate adjustment and over the life of the loan.

Key Features:

  • Available in 5/1 term.
  • Fixed rate for the first five years.
  • No private mortgage insurance.
  • Variable rate can adjust up or down at the end of the fixed term.
  • Rate increases are capped at a pre-set maximum.
  • Attractive interest rates and low closing costs.

ARM loans are named by the duration of the initial rate period and how often the rate will adjust thereafter. First Bank of the Lake offers a 5/1 Adjustable Rate Mortgage:

The “5” stands for the 5-year initial rate period during which the interest rate remains the same.

The “1” shows that the interest rate can adjust once per year after the initial rate period expires. An ARM loan may be a good option if you plan to move or refinance within a few years or if you expect your income to grow in the future.

Let us help see if an adjustable-rate mortgage is right for you. To apply for an Adjustable Rate Mortgage (ARM), contact your Loan Officer who will email an application to you. 


Jumbo Loans

Looking to buy a home in a higher price range?

We’ve got you covered. If you’re buying, financing, or building a home with a higher property value and can manage larger monthly mortgage payments, a jumbo loan, also referred to as a non-conforming loan, may be a good choice for you.

“Non-conforming” refers to loan amounts higher than the maximum conforming limits available for Fannie Mae loans. Jumbo loans are available in a variety of fixed-rate and adjustable-rate options. Although they usually feature both a higher down payment amount and higher interest rate than standard mortgages, a fixed or variable-rate jumbo loan can help some people accommodate large purchases.

Key Features:

  • Home financing option above $510,400.
  • Variety of loan terms are available.
  • Financing for primary residences and vacation homes.
  • Fixed rate, adjustable rate and interest-only payment options.
  • Purchase, Refinance, and Construction options available.
  • Attractive interest rates and low closing costs.

Let us help finance your luxury home. Complete an application for a fixed-rate mortgage to Get Started today! To apply for an Adjustable Rate Mortgage (ARM), contact your Loan Officer who will email an application to you. 



All of us here at First Bank of the Lake hope that you found this blog helpful and enlightening when searching for the right home loan to fit your needs. These are just a few of the mortgage financing options we offer. Stay tuned next month for when we revel more options in the second part of this blog series. If you have any questions, please do not hesitate to call us at the phone number listed below.




First Bank of the Lake - Striving For Excellence
Member FDIC. 


Connect With Us On LinkedIn

Located at the entrance to the Osage Beach Premium Outlets!

4558 Osage Beach Parkway

Suite 100
Osage Beach, MO 65065

(573) 348-2265