Author Archives: TimberwoodBanks Blogger

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!

Teaching Your Children to Save

Children Saving

Sharing the value of money with your children can be an insightful learning opportunity. By encouraging them to grow in their fiscal responsibility they can begin to comprehend how to properly use and save money. Try these simple lessons to begin teaching your littles ones the importance of finances.

  1. See the value of savings: Before they understand the concept of retirement, help them see the advantage of long term savings. Just as companies offer to match their employee’s savings plan contributions, offer to match your child’s investment in a purchase. If they save for half the amount, you’ll contribute the other half.
  2. Create a goal chart: Saving for a car, a college degree, or a home takes years of planning. Let your child see the value of long term savings by helping them visually track progress in their own investment. Choose a purchase such as a new tech device or a day trip to an amusement park. Based on their allowance and other sources of income, draw a column of boxes to represent the number of weeks of savings it will require, then draw an X or place a sticker in each box once they save the weekly amount.
  3. Open a savings account: An interest-bearing savings account can help your child track their money as it expands through simple deposits and compound interest. Open an account for your child early on to educate them on the concept of finances, and have them deposit a percentage of their allowance each month to see their own wealth grow.
  4. Demonstrate checking: When your child is comfortable with complex addition and subtraction, have them assist you as you track your deposits and purchases while balancing your checkbook. Show them a bank statement and explain the different components, identifying which numbers help you balance your checking account. Take this opportunity to explain the relationship between savings and checking accounts and give examples of why and when you would use each.
  5. Set an example: Your children look to you to set a precedent, so if you save, they save, and if you spend, they spend. Set up a savings jar at home for extra change and designate these additional funds to fun family events such as ice cream trips, movie nights, and more. Show them the power of savings one coin at a time!

Timberwood Bank wants to see you and your little ones succeed. Stop in today to learn about our children’s savings account options!

 

eStatements and Online Banking

online banking

Timberwood Bank provides safe, speedy, and current access to your finances in-and-out of the office. Did you know that you can receive the same quality service on your digital device? Take a look at the benefits of our Online Banking and eStatements options.

Check your balance: When having a conversation about a trip, gift, or medical expense, don’t let the talk derail because of uncertainty surrounding your funds. View your balance and account history in a flash.

Transfer Funds: Savings, checking… your multiple accounts shouldn’t be a headache to manage. Transfer funds from one account to another with just a couple of clicks.

Automatic payments: Shelling out for your mortgage and car payment each month gets redundant. With the automatic payment system, we’ll remove the monotony of monthly payments. Select a reoccurring expense, and set the amount due by a certain date each month. When the date rolls around, a payment will be made automatically.

Set reminders: If you prefer to pay bills on a month-to-month basis, Online Bill Pay allows you to set e-mail reminders so you can receive notifications and avoid late fees.

Go green & stay safe: Digital payments cut down on the need for paper bills, allowing you to opt for an eco-friendly alternative. Plus, it reduces the risk of identity theft and fraud.

Keep a record: Don’t waste time worrying about whether or not you paid your bill. Access a history of your payments with a couple of clicks to put your mind at ease.

For information on extra features or assistance setting up your online account, call Timberwood Bank at (608) 372-0216 today!

Home Buying in a Winter Wonderland

home

Begin the journey of purchasing your new home with Timberwood Bank! We’ll help guide you through the process of securing a new residence for you and your family. Stick with these easy do’s and don’ts and you’ll be on the path to success.

Do:

  • Secure a loan before a home: While the hunt for the first house is exciting, your final decision will depend on the mortgage you can secure. Your first step in the home buying search should take place with a loan officer who can assess whether you qualify for a mortgage, and if so, at what price. This provides a framework guiding the search so you don’t expend time and money on houses outside your means.
  • Take your time: The average homeowner occupies their house for nine years before relocating, so additional time spent thoroughly searching for homes can reap a decade of benefit. Track trends in the housing market to buy during the most cost-effective season. Weigh personal, important factors beyond price listing, such as neighborhood quality, length of commute, and potential for expansion and home improvement.
  • Consult the professionals: The listing agent represents the interests of the seller, not the buyer. As a first-time home buyer, you’ll need as much trusted, unbiased advice as you can garner. Ask friends and family to recommend their real estate agents so you receive counsel from a professional with a track-record of success.

Don’t:

  • Look at homes well over your budget: You set a budget for a reason. Stick to it! Paying more than you designated for a home can financially limit you to update and repair as needed. By spending within your originally determined limit, you’ll avoid heftier mortgages and continue to withhold extra funds for any household incidentals.
  • Empty savings into a down payment: Securing your mortgage requires a down payment. Putting down less than 20% requires you to buy mortgage insurance. To avoid this added expense, some home buyers drain their savings to cover the down payment upfront. Liquidating your account, however, leaves you without a safety net in the event of job loss or medical emergency. The expense of mortgage insurance is worth the financial cushion you can leave in your account, and you can always eliminate the insurance once you’ve paid off 20% and opt to refinance your mortgage.
  • Speed through the closing: The end is in sight, but don’t let the glow of the finish line obscure your view of the paperwork. Review documents with a fine-tooth comb, double check that nothing has been altered in your agreement, and ensure that it describes your understanding of the transaction to a “T”. A day or two of extra analyzing can save you years of headaches!

At Timberwood Bank, we offer a number of mortgage options to make securing your home as feasible as possible. To schedule your first meeting with one of our knowledgeable mortgage bankers, give us a call at (603) 372-2265.

The Journey of Coffee from Plant to Pour

Coffee

Whether it’s iced, pressed, decaffeinated, or steamed, coffee in the United States is a staple in the daily routine of over 50% of the population. For energy, for social gatherings, or for the sake of routine, consumption of caffeinated brews create an $18 billion industry in the U.S. each year. However, after the average cup of joe in 2015 rang in at $3.28 – higher than mugs in 2013 and 2014 – consumers may wonder what they’re actually investing in. Take a look at the journey your java travels from bean to latte!

  1. Planting: After a bean is dried, roasted, ground, and brewed, its coffee! When left in its natural state, it’s a seed that grows into a thriving coffee tree. Planted in shaded nurseries away from bright sunlight, coffee seeds are repotted in special soil after sprouting.
  2. Harvesting: It takes almost four years for a new tree to produce bright red coffee beans, commonly referred to as cherries. These cherries are picked by both hand and machine, eventually arriving at a processing plant.
  3. Processing: To prevent spoiling, harvested beans must be processed as soon as possible. Companies using a dry method spread the beans in the sun, turning them each day to even the drying. This process may take several weeks to complete. Alternatively, a wet method separates pulp from its skin, allowing the beans to ferment and leaves only the bean’s meat.
  4. Drying: An additional step in the wet version of processing, drying is a crucial step in the bean’s journey. Spreading them in the sun or passing them through a tumbler, the beans become dry and are ready for the next step.
  5. Milling: Dried husks are removed from the cherries, followed by sorting beans by size and weight. Additionally, they’re graded on a scale of 1-5, with Grade 1 beans exhibiting the highest quality taste, acidity, and aroma and Grade 5 beans revealing defects in more than 86% of the sample batch.
  6. Exporting: Now considered green, finished beans are loaded in bulk and sent worldwide.
  7. Tasting: During this step commonly known as cupping, professional tasters sample the brewed product and rate it on factors like visual appearance, scent of grounds, and variant flavors in each sip of a blend.
  8. Roasting: Placed into roasting machines approximately 550 °F, beans are heated until they turn brown, releasing caffeol, the natural oil responsible for coffee’s iconic aroma. They are then quickly cooled by air or water, completing the roasting process. This step is performed just before sale to consumers, preserving freshness and flavor of the coffee beans.
  9. Grinding: The different variations of coffee beverages are the result of overall choices on the coarseness of the grounds and length of time spent brewing. An espresso, for example, uses finely ground beans in a fast prep process, whereas a traditional coffee pot relies on coarser grounds in a longer brew.
  10. Brewing: Machine, water quality, coffee-to-water ratio, temperature, additives, and brew time all alter the effect of the final cup of coffee. The brew is the final step to achieving the end result of a delicious cup of coffee. With so many variables and potential additives, the list of coffee beverages is seemingly endless!

With such a long journey, that $3.28 doesn’t seem so unreasonable now, does it?

Shelling out a couple bucks for a latte here and there won’t break the bank. Making it a daily routine, however, could. Our helpful lenders at Timberwood Bank can help you budget personal expenses so you can have your coffee and drink it, too. Stop by and share a cup with us today!

 

To sign or not to sign – Deciding to Co-sign a Loan

co-signing a loan

Co-signing is an act of great responsibility and trust. This formality of dual liability enables those otherwise unable to attain a loan to gain the financial capabilities they seek. When approached to co-sign for someone you may want to consider the following tips, provided by Timberwood Bank.

Look at the relationship you and this person currently have.

Are they trustworthy in the capacity you socialize with them? Have any red flags popped up concerning them and their well-being in the recent past? Co-signing affects not only the principal signer, but also the co-signer, holding both to the terms of the contract. It is a fantastic deed to help another achieve their goals, but ensure that you are protected as well when doing so. As a precaution it is a good idea to speak with the loan officer and request communication if the principal signer does default on a payment. In this instance you are aware of the problem before interest and fees begin to accumulate on any missed installment.

Analyze your current financial stability.

If some unforeseen event occurs and you are left holding the bucket for the remaining amount attached to the loan, will you be able to pay it along with your other regular expenses? Take some time to calculate your own capabilities with this loan if you were the sole signer for the account. If the funds don’t work into your budget, or cut the budget too tight, you may consider reducing the loan amount, or postponing the timeline for loan signing. It may be possible to speak with a loan officer to negotiate and see if the co-signer may be responsible for the principal amount only, no interest. Never hurts to ask!

Communicate with both the bank and your fellow co-signer.

Throughout the loan payments your credit and financial reputation will be tied to this agreement. It is much better to help pay a payment or two than have the loan default. By keeping consistent communications with the other co-signer and their bank you can have update on their own financial state, aiding if needed. Since this is a two person liability ensure you reach out to the co-signer often, if they decide this wasn’t for them, you may be left paying the loan yourself.

 

Co-singing loans opens many doors for new graduates, credit builders, and other friends and family that need assistance. With a good credit score and financial history you could be a great fit to be a potential co-signer.

Thoughtful Last-Minute Gifts for the Holidays

holiday gifts

The clock is ticking, the budget is dwindling, your energy is fading… what do you do about those last couple of names on your gift list?

Instead of grabbing the first thing you see on the shelves, our team at Timberwood Bank has assembled a couple of last-minute gift options which are both personal and wallet friendly.

  1. Tap the App store: If your gift recipient is app-happy, gift them a few new apps from the Apple store. Sent directly from your personal device, choose the “Gift This App” option to deliver it to another’s iPad, iPhone, or iPod in a matter of moments.
  2. Compile a memory bucket: For $5-$10, you can stuff a creative container (think lanterns, shower caddies, etc.) with snacks and trinkets that commemorate your relationship. Dollar stores, bargain bins, and thrift stores are perfect for padding this gift, as the goal is quantity and not quality of materials (although the memories they represent are top notch!).
  3. Personalize a mug: Most dollar stores carry mugs that can easily be customized with the help of a Sharpie. Draw on a favorite quote, a lesser-known nickname, or an inside joke they wouldn’t be able to find anywhere online. Stick it in the oven to bake for 15 minutes at 400 degrees to seal it on. Bonus points if you stuff the mug with packets of their favorite hot drink!
  4. Whet Their Appetite for a Dinner Date: Rather than a gift card to a restaurant, gift a symbolic item promising they can redeem it for the real thing with you later. Do they love barbecue joints? Wrap up a bottle of their favorite sauce! They’ll love the excitement of a two-part present.
  5. Where you met: For friends and significant others, commemorate the first time you met with an inexpensive memento of that location. If it’s a coffee thermos from the café, or a homemade pendant of the city where your paths collided, they’ll remember the launch to your relationship every time they use it.

You don’t need to break the bank to make your gifts matter. For an extra hand allocating your cash wisely, give our personal bankers at Timberwood Bank a call!