Monthly Archives: February 2016

Planning for Your Retirement in 3 Simple Steps

Retirement

A successful retirement plan involves extensive planning and lots of patience. Once accomplished however, you gain the benefit of watching your finances work for you! The average age of retirement is climbing. Currently averaging at age 62, reports speculate that the average retirement age may increase to 75 for recent graduates facing mountains of student debt. As in any successful game plan, the key is to have an effective and feasible strategy, here’s how to begin.

Start Saving Now

Even if it’s just a little at a time, saving 6% of your earnings annually can begin to set you up for a lofty retirement. Did you know if you save even 10% of your annual income you could save $1,555,000 and retire at age 70? (Based off of median salary of $45,478 and $35,051 in student loan debt.) Dig a little deeper and see what savings potential you have!

Hop on that 401k ASAP

Tucking away pre-tax money is like being asked if you want a puppy as a child, the answer is always yes! By using this valuable system you are able to put a percentage of your annual salary away without having to pay taxes on it that year. Generally employers may match a percentage of your contribution, so if you put 6% of a $45,000 salary ($2,700) into a 401(k), and your company contributes 3% additionally ($1,350), you would yield a yearly contribution of $4050 towards your retirement! Another perk of utilizing a 401(k) is the change in your taxable income. The amount that you invest in your 401(k) is deducted from your taxable income reducing the final amount you pay on your yearly income tax. (Example: $45,000 – $4050 = $40,950)

Grow a Diverse Portfolio

Ensuring your finances’ diversity is a large component to a successful retirement. The saying “Don’t put all your eggs in one basket,” is the epitome of investing. By creating an investment plan that entails stocks, bonds, equities and more you are able to gain the benefits and financial buffers that each individual product provides. Additionally this allows you optimize your savings, ensuring the gain and profit generated from each asset goes towards to your growing retirement fund.

Use these simple tips from Timberwood Bank to help bolster your retirement nest egg! Stop in or give us a call at (608) 372-2265 to learn more today!

Mortgage Financing 101: Which type of loan is right for you?

Home Financing

A spacious backyard with a white picket fence. A rustic plot in the country just outside of town. A four-bedroom beauty custom designed by you and your spouse. Whatever your vision, home ownership is a unique and fulfilling adventure! At Timberwood Bank, we offer a variety of mortgage options to help you finance your slice of the American dream. Take a peek at just a few of our loan offerings:

Fixed Rate Mortgage Loan – Whether on a 15-year-plan or a 30, a fixed-rate mortgage ensures a consistent monthly payment for the length of your loan. Stable and dependable, frozen rates allow you to plan for the future, and refinancing options are available should your plans change. Timberwood makes it especially easy, offering customizable options to create the loan that works best with your budget.

USDA – Rural Development Loan – High down payments, traditional credit requirements, and steep debt-to-income ratios can be the barrier separating you from homeownership. The USDA-Rural Development loan program, however, helps navigate around these barriers. Helping fund closing costs, legal fees, title services, and other up-front payments, these loans

WHEDA Loan (Wisconsin Housing Economic Development Authority) – Unique financing options have made WHEDA a smart loan choice for Wisconsin residents for more than 40 years. Offering assistance with down payments, special tax credits to qualified borrowers, and preferred fixed interest rates for first-time home buyers, a WHEDA loan may be right for you. Ask your Timberwood Bank lender to help you discover the most effective WHEDA loan for you!

Home Equity Line of Credit (HELOC) – Take full advantage of the equity already sitting in your home with our HELOC option, which offers lower interest rates than many credit cards and consumer loans. Fund a home renovation, a much needed repair, or a home addition with this tax-deductible option that also helps build your credit score.

Lot Loan You’ve got the land to build the house of your dreams, but perhaps you’re not quite ready to break ground. Our Lot Loans may serve you best! Through this option, you can purchase and secure your lot while you continue to design and plan your dream home. We’ll help you get the ball rolling once you’ve selected your contractor and uncovered your plan to your dream home.

Our experienced loan officers at Timberwood Bank are ready and excited to help you take the next big steps towards home ownership.  Give us a call at (608)372-2265 to set up an appointment today!

10 Random Acts of Kindness

Random Acts of Kindness

There are so many small and valuable things we can do to impact the life of another. While some of them are financially bound, others can be simple tasks, such as opening the door for someone. This year challenge yourself to more acts of kindness, random or not.

  1. Pay for the person’s food or beverage behind you in line.
  2. Write a letter to a soldier.
  3. Donate new and used toys to daycares or children’s hospitals.
  4. Cook a meal for a family who may be without.
  5. Give a good server the largest tip you can afford.
  6. Scoop snow or do other yard work for your neighbor.
  7. Pick up trash at an area park.
  8. Offer assistance to a charitable organization with your time and skills.
  9. Bake treats for your area school’s teachers.
  10. Visit a nursing home and spend time with the residents.

In addition to being kinder in 2016 you may find yourself becoming happier as well! With so many opportunities to make a difference, this list will help you get started! Add your own acts of kindness and see what you can do to better the lives of others this year.

If you’d like to contribute to others in a financial avenue let us know, we’d love to help! Timberwood Bank can assist you in remaining anonymous in donations, arrange monthly transfers, dispense cash for personal giving, and more!

Planning for Spring – Dairy Farming 101

Dairy Farming

Did you know that Wisconsin produces nearly 300 million gallons of milk per month! As one of the largest dairy producing states in the country, Wisconsin’s agriculture industry is a powerful force for the economy. Like many other businesses, the agriculture operations we work with utilize our flexible financing to help make the most out of their hard-working long hours. If you’re curious what all goes into a glass of milk, see the journey below, courtesy of Timberwood Bank.

Rearing – The first stage in the process involves raising the cow. Feeding, sheltering, and caring for the animal until it reaches the appropriate age to produce milk.

Harvesting – Back before the milking machine was invented farmers would hand milk their entire dairy herd twice each day! With the average Wisconsin dairy farm raising over 132 cows… that’s a lot of milking! Now that farmers have new milking technology they can cut that time more than half, while still milking their herd twice a day!

Storing – One of the most important factors when storing milk is temperature. Milk vats of all shapes and sizes are built with refrigeration in mind, generally keeping the milk around 39 degrees. Once the transportation comes to collect the liquid, about every 1-2 days, the tanks are cleaned and sanitized before fresh milk is stored again.

Transportation Since the milk needs to keep consistently cold, each of the tanks for transportation is heavily insulated to retain the constant cold. These tank drivers also double as accredited milk testers, ensuring that each batch received is of the appropriate grade.

Testing – Once back at the lab samples of the milk are further tested for quality and temperature before entering the processing system.

Processing – After moving through the testing, whole milk is then pumped into an automated system of pasteurization, homogenization, separation, and additional processing.

Pasteurization – Heating the milk to a consistent temperature for a period of time.

Homogenization – Using an atomizer this process forms tiny particles evenly dispersing fat throughout the milk.

Separation – Separating the milk from the cream, later mixing to the desired content.

                Whole Milk: 3.25% fat    Low Fat Milk: 1% fat        Skim: .05% fat

Packaging – Various companies package milk differently. The one thing that all of them have is the date showing when the milk will expire.

Selling – Once packaged the milk is then ready for consumers. Time for milk and cookies!

Next time you see a farmer be sure to say thank-you!

We are proud to work with so many incredible agricultural operations in the area. If you’re getting ready for work this spring, be sure to give us a call at Timberwood Bank, we’d love to help get you started!