Considering a Luxury Vehicle
The kids have graduated from high school and are on their way to college. Perhaps a smaller vehicle is in order. Or, perhaps, you’ve worked hard and you want to treat yourself to a high-end luxury vehicle. Now may be the time to purchase that dream vehicle. South Valley Bank & Trust can provide financing for your new car. Simply talk to one of our branch managers or personal bankers. They can explain the options available to you.
The latest luxury vehicles on the market:
Selling a Vehicle
When selling your vehicle to a private party, there are guidelines that should be followed to ensure a smooth sale. Kelley Blue Book recommends the following steps when selling your vehicle:
Communicate with potential buyers
Car preparation (clean inside & outside of vehicle)
Negotiate like a smart salesperson
Know what not to say
Commit to a meeting time and place
Conduct a safe and well-planned test drive
Get to know your potential buyer
Omit possible objections
Find out how the buyer is planning to pay
Bargain with your buyer, but end with a “win-win”
Another option is to use your vehicle as a trade-in at the dealership where you plan to purchase your next vehicle. While trading-in a vehicle is usually easier than selling it privately, you may get less for the vehicle from a dealership. Before you go to a dealership, make sure to check your vehicle’s trade-in value so that you can negotiate the best price for your vehicle. For more information on the value of your vehicle, please visit the following link:
Purchasing a New Vehicle
Purchasing a new vehicle is very different than purchasing a used vehicle. The biggest difference is that you will be working with a dealership rather than a private party. Kelley Blue Book recommends taking the following precautions when purchasing a new vehicle:
Consumer Reports often provides impartial ratings on the new vehicles. You can purchase the physical magazines at any magazine stand or bookstore or sign up online. Purchasing a Used Vehicle Kelley Blue Book’s website recommends the following steps when purchasing a used vehicle:
Decide on the right vehicle for you. Be sure to determine the fuel efficiency of the vehicle – will you be able to afford the gas? Also look at certain features that you will need in the vehicle such as four wheel drive or anti-lock brakes
Consider buying a certified pre-owned vehicle
Determine the value of the vehicle
Contact the seller
Obtain both a history and safety rating on the vehicle
Conduct a thorough walk around inspection of the vehicle
Test drive the vehicle
Take the vehicle to a mechanic for a thorough evaluation
Negotiate with the seller for the best price. Always do your research before negotiating – know what the vehicle is worth before trying to negotiate!
The following are additional websites with more information on buying a used vehicle:
By using VIN (vehicle identification number) reports, you can get a history and accident record on any vehicle. It is important to learn about the history of the vehicle you're interested in buying and these reports can give you information about where it has been owned, how many owners it has had, and any damage done to it.
Financing Your Vehicle
South Valley Bank & Trust makes car and other consumer loans. The following steps may help ease the car buying and loan application process:
Decide the term of loan you want (1 year, 2 years, etc.)
Don’t forget extra expenses (gas, maintenance, insurance)
As an added benefit of having any South Valley Bank & Trust checking account, you qualify for the $50 Consumer Automobile Loan Coupon. Contact your South Valley Bank & Trust branch to inquire about our auto loan options. Vehicle Insurance
When purchasing a vehicle, it is critical to factor in the cost of auto insurance. Since insurance is required and lack of insurance is punishable by large fines and a one year jail sentence, finding and maintaining insurance should be a priority.
Each state has its own set of insurance laws, for Oregon insurance requirements, visit the Oregon Department of Motor Vehicles (DMV) website. Insurance.com recommends the following eight items to think about when searching for auto insurance:
Determine appropriate coverage
Shop around
Look for insurance discounts
Consider taking a higher deductible
Look into stacking coverage if you file a claim
Check with your insurance company before you buy a vehicle
If you have a loan on your vehicle, be sure to notify the lender immediately if you change insurance companies
Pick the insurance payment option that best fits your budget
The following are websites with insurance information as well as a few auto insurance companies:
Saving at the Gas Pump
It is always important to increase the fuel efficiency of your vehicle. The following tips may help increase your gas mileage:
Avoid speeding, rapid acceleration and rapid braking
Remove excess weight from the vehicle
Avoid excess idling
Use cruise control when possible
Keep engine tuned
Check and replace air filters regularly
Keep tires inflated to recommended weight
Use recommended grade of motor oil and have regular oil changes
Be aware of competing gas prices in town and use the stations with the lowest per gallon price whenever possible. The following websites may help you find the cheapest gas in your area, as well as additional tips on improving gas mileage:
Vehicle Maintenance
A vehicle is a considerable commitment. It requires scheduled maintenance to keep your vehicle running safely and efficiently. The following are a few maintenance requirements:
Check tire pressure and keep tires properly inflated
Change motor oil every 3000 miles
Monitor brake fluid
Monitor transmission fluid
Check and replace air filters
Replace windshield wipers
For an extensive list of required vehicle maintenance and complete how-to guides, please visit the following website:
It goes without saying...be safe; don’t drink and drive!
Pre-Retirement - Career
You undoubtedly have many years of experience at this point. You might be very satisfied with your job and career choice, but if not, you still have time to make a change! It’s not too late to change directions in occupation or even go back to school to obtain a necessary degree. We hope the following tips and related links to information are helpful.
Applying for a Job
It may have been a few years since you applied for a job. When applying for a job, remember that it’s important to make a good first impression.
Dress professionally even if you are just asking for an application
Be polite to the receptionist
Communicate professionally
Take the time to neatly and completely fill out the application
Return the application promptly
Check on the status of your application every few days
Résumé Tips
A résumé is a tool to highlight your skills and experience. It gives an employer a snapshot of what you’ve accomplished and how you can contribute to their company. While writing a résumé can sometimes seem overwhelming, there are several resources to assist in writing a great résumé. Free-Résumé-Tips.com recommends the following tips when writing a résumé:
Use titles or headings that match the job you want
Use a design that grabs the reader’s attention
Create content that sells
Quantify and use power words such as “manage” and “oversee”
Analyze ads and job descriptions to identify key words
Identify and solve employer’s hidden needs
Sell the benefits of your skills
Create an image that matches the salary that you want
Prioritize the content of your résumé
Tweak and target your résumé and cover letters
For more tips on writing résumés, visit the following websites:
Cover Letters Résumé-Resource.com maintains that “cover letters are used to introduce yourself and your résumé, while clearly stating your desire to apply for a job position in a new company, or make yourself available for a job position within a company. The cover letter is the formal introduction that provides a brief explanation of your job field, experience, areas of expertise and relevant knowledge in relationship to the job being applied for.”
A cover letter should always accompany a résumé. For more information on writing cover letters, visit the following websites:
Job/Career Searches
When searching for a job or career, the following is a list of sources to help find job postings:
Classifieds in local newspapers
Internet job-posting websites
State employment department
Employment departments within each company
You can also use an employment agency but they may charge you a “finder’s fee.” However, some employers will pay the fee. Be sure to ask up front!
The following are a few national and local Internet job-posting websites:
Preparing for the Interview
Before your interview, think about your ability to do the job and the special skills you have to offer the employer. Be prepared to answer some of these questions:
Why do you want this job?
What are your job related skills?
What experience do you have?
Why did you leave each job?
What are your strong points - and what are your weaknesses?
What are your salary expectations?
There will undoubtedly be many more questions. There are any number of books available that cover all the types of questions an employer may ask. Take the time to be prepared! Role-play with a friend to build your confidence!
Once the interview begins, try to relax by taking a deep breath. If they don’t ask, be sure to tell them what you want them to know - that you are reliable, that you do good work and that you get along with others. If you get a chance, ask questions that show you are truly interested in their job!
Making a Good Impression
It goes without saying that after you have found a job, do your best to impress your employer.
Be on time! And don’t miss work!
Always do your job to the best of your ability. Accuracy is important.
Do MORE than you are asked to do.
Volunteer when you have extra time.
Make yourself available to cover extra shifts.
Get along with your co-workers, helping them when you can.
Ask your employer how you can improve after a few weeks; then follow through!
If you’re a good employee, your employer will be a valuable reference in the future.
Other Jobs
If you are not able to work at a jobsite and need some extra cash, consider these jobs:
Working for a company but from home
Bookkeeping/bill paying services
Providing landscaping services for friends or neighbors
Be sure to look into the licensing requirements in your city.
Plan for the Future
While you may be thinking about retiring, you are mostly likely not ready yet. It’s a good time to think about the type of job you are in and how that may fit into your retirement plan. Can you scale down the number of hours worked before you completely retire? Are you in the type of job that you could do freelance once you retire if you want extra income or are finding that you need stimulating work?
Volunteering
Many people who retire fill their time with volunteer work. Volunteering is an excellent way of giving back to the community without the pressures of a job. It’s not a bad idea to begin thinking about what you’d like to become involved in. Consider donating your time to the following institutions:
Hospitals
Schools
Libraries
Senior centers
Chamber of Commerce
Children’s educational programs
Animal centers
Numerous not-for-profits
Contact your local centers to learn about volunteer opportunities.
Pre-Retirement - College
College-bound Grandchildren
Do you want to help your grandchildren with their college expenses?
Bankrate.com’s Saving for College is an article explaining the 529 Savings Account:
Trust Services South Valley Bank & Trust (SVBT), an Oregon banking corporation, is chartered to offer a full array of Trust services including Planning and Consultation, Trust and Estate Administration and IRA Services. By working with you, and if you wish, your advisors, our Trust officers can help develop your estate plan to insure that your wishes are fully addressed and your estate is fully protected.
Some of our clients choose South Valley Bank & Trust's estate services because they desire to set up a financial plan for their adult children or others. They want a professional with training and experience in investments and managing an estate to carry out their precise plan. Others simply want Trust services to make it easier on their loved ones, who may not be the best position for managing an inheritance.
Whatever your reason, you can be assured that our Trust professionals are trained and understand that they are managing your estate. Part of that means they are highly-regulated to carry out your wishes fully and giving you peace of mind.
There is no fee for a consultation and no pressure to sign up for their services.
Trust Options
Estate Planning and Consultation
Personal Representative of an Estate-Executor/Administrator
Conservatorship
Living Trust - Revocable or Irrevocable
Testamentary Trust
Property and Investment Management Agency
Custodial Account
Rollover IRA - Self-Directed and Specialty Assets
Charitable Gift or Portfolio Management
1. Estate Planning and Consultation
Estate Planning is a service where South Valley works with the client and their attorney or other advisors, to analyze the client’s assets and financial interests and arrange a plan for conserving estate assets. This service generally leads to SVBT being named personal representative and/or Trustee under the plan. The purpose of the plan is to minimize estate and other taxes, assure the security of the client’s family, arrange for the continuity of his business, and provide for the disposition of assets according to the client’s wishes.
2. Personal Representative of an Estate - Executor/Administrator
Serving as personal representative or administrator is settling the estate of one who has died either leaving a Will (testate) or without a Will (intestate). South Valley may have been named in the decedent’s Will as the personal representative or executor of the estate. If the decedent names an individual as personal representative, that individual may have SVBT appointed as agent for the personal representative. If the deceased died intestate, the court may appoint SVBT as administrator of the estate. In each of these cases (whether as personal representative, agent for the personal representative, or administrator) South Valley makes an inventory of the assets of the estate, prepares a budget for the settlement of the estate, pays all taxes and claims against the estate, prepares a final accounting for the probate court, and makes the final distribution of the assets to the heir and beneficiaries.
3. Living Trust - Revocable or Irrevocable
A Living Trust is a Trust for which South Valley, as Trustee, usually assumes full management responsibility for the assets placed in rust. Such a Trust may be revocable or irrevocable, and established for a variety of reasons. The Trustor may need professional or specialized investment management, may not have the skills necessary to manage his wealth, may not have the time to give to managing his investments, or may have other priorities. A Trust established for investment management provides financial protection in the event of incapacity and can be structured to avoid probate and obtain tax savings at the death of the trustor.
4. Testamentary Trust
A Testamentary Trust is created under a Will. A person writing a Will may leave property directly to the beneficiaries or leave it in a Trust for them, a Testamentary Trust.
Testamentary Trusts are established to protect the family, save on taxes, and manage investments, businesses, and farms. Family protection includes preserving the family home, relieving survivors of the responsibility for managing investments and other property, and supplying income necessary to maintain the family’s standard of living. It also includes providing for the special needs of children and eliminating the need to appoint a custodian for the children. (A guardian of the person of minor children is required and this must be an individual, not South Valley.)
A Testamentary Trust enables a person who has been remarried and has children from a previous marriage to provide for the surviving spouse and ultimately channel assets to his or her own children. It is also a way to provide life-long care for children who are suffering from physical, emotional, or mental disabilities.
5. Conservatorship
A Conservatorship is a court-appointed arrangement for the financial protection of the estate of an incapacitated person. Conservatorships are established for individuals who are considered legally incapacitated and own property not otherwise protected, have business affairs that are jeopardized by their incapacity and need funds for support or education of themselves and or their dependents. Common instances of legal incapacity are minors and adults who are incapacitated by medical causes, effects of aging, mental illness, addiction to drugs or alcohol, or confinement. The Conservator’s responsibility is much like the responsibility involved in estate settlement; gathering the assets, filing an inventory with the court, managing the property in the client’s best interest, making a periodic accounting to the court, and terminating the Conservatorship and distributing property at the appropriate time.
6. Property and Investment Management Agency
An Agency Account is a service where South Valley provides management or advisory service as complete as the client requests. The property managed may be securities, real property (a house, rental buildings or a farm), or other property.
Where securities are managed, SVBT may conduct periodic reviews and analyses of the securities; make recommendations for keeping or selling present securities and purchasing new ones; providing advance notice of maturity of bonds or notes; preparing an annual information statement for income tax purposes and watching for advantageous opportunities related to the securities held. The amount of discretion exercised by SVBT varies with the relationship from full discretion (South Valley is free to buy, sell and exchange securities within the principal’s portfolio without the client’s consent) to simply making recommendations to the client about proposed investment changes.
As managing agent for real property, South Valley may obtain tenants, arrange and handle leases, collect rents, advise the client of needed repairs and take care of those repairs, and pay insurance premiums, taxes, interest on the mortgage, or other assessments. As with the managing agency for securities, the management agency for real property will have varying degrees of discretion assigned to South Valley.
7. Custodial Account
A Custodial Account is a service where SVBT, as custodian for the principal, not only oversees the property but also takes care of the routine administrative tasks associated with it. This includes receiving dividends and interest and disbursing or reinvesting them as the client instructs; collecting the principal on matured or called bonds, notifying the client of corporate actions affecting the property (bond calls, defaults, tender offers, class action suits); buying, selling, receiving or delivering securities at the client’s direction and providing a periodic statement of account activity (receipts and disbursements).
8. Rollover IRA - Self-Directed and Specialty Assets
Rollover IRA services are provided in a variety of circumstances, including for individuals receiving a large distribution (over $250,000) from their employer’s retirement plan. A direct rollover from the employer’s plan can prevent current taxability. Direct transfers from other IRAs may also be made. Rollover IRA service includes allowing self-direction of investments or full management. By maintaining an IRA, taxes on investment earnings as well as the capital rolled over are deferred until withdrawn. A wide range of investment opportunities such as stocks, bonds and mutual funds is available with this service. Additionally, South Valley is able to accept specialty assets into Rollover IRAs such as closely held stock, real property and notes secured by Deeds of Trust.
9. Charitable Gift or Portfolio Management
Charitable gifts may be made outright to the charity, as a part of a Will or estate plan, and through a variety of different charitable Trusts. South Valley Bank & Trust serves as Trustee for these gifts, managing, administering and disbursing them to assure that the charitable intent established by the donor under the pertinent gift agreement is adhered to in perpetuity. South Valley also serves as an investment agent for the charity itself to professionally manage and account for gift funds in its portfolio.
Trust Services Locations:
Klamath Falls Trust Services
PO BOX 5210
801 Main Street
Klamath Falls, OR 97601 Phone: 877.487.8788 (toll-free) Fax: 541.880.5252
Medford Trust Services
PO BOX 1784
860 O'Hare Parkway, Suite 100
Medford, OR 97504 Phone: 800.695.0330 (toll-free) Fax: 541.779.1916
Please note: A Trust officer is available to clients in all areas, including Crook County, Deschutes County, Jackson County, Jefferson County, Klamath County and Lake County.
Wills
A Will is a legal document determining the following actions upon death:
Distribution of property
Designation of a guardian for minor children
Creation of a Trust and designation of a Trustee to oversee an estate
Designation of personal representative or “executor”
If a Will is not completed at the time of death, the state will determine resolution for the estate. For more information on the importance of Wills, visit the following websites
Living Trusts
Revocable Living Trusts act much like a Will and perform many of the same functions. However, a Will is valid after being submitted to court for probate and a Trust is effective the day it is signed. People utilize Trusts to avoid a lengthy probate process required by the use of Wills, but Trusts can be complex and may not be the right option for everyone. For more information, visit the following websites:
Guardianships and Conservatorships
In Oregon, guardians are appointed by the courts or by being named in a legal document. A guardian has custody of the protected person and may establish that person’s residence. Each state’s laws are different in regards to Guardianships & Conservatorships. Some states grant the authority over both the physical and financial well being of the protected person. Other states, like Oregon, separate the two obligations. For example, South Valley’s Trust department will only act as conservator and not guardian. South Valley will also not act as a health care representative under an advance directive. The guardian has a duty to provide care, comfort, maintenance, training, and/or education for the protected person.
Conservators are appointed by the court when a person becomes incapable of handling personal or business financial affairs and/or managing their property. When a conservator is appointed they have a fiduciary duty to follow strict reporting and administrative guidelines.
The following links may be helpful:
Advance Directives
An Advance Directive is specific healthcare instructions given by individuals outlining what actions should be taken if they become ill or incapacitated. An Advance Directive should be developed while the individual is able to clearly communicate their thoughts and must be expressly the person's own free will. It does not affect routine care for cleanliness and comfort, which must be given whether or not there is an advance directive.
The following links may be helpful:
Trust and Estate Planning
South Valley Bank & Trust offers a wide variety of Trust and Estate Services to assist you in ensuring your financial security.
By working with you, and if you wish, your advisors, our Trust officers can help develop your estate plan to insure that your wishes are fully addressed and your estate is fully protected.
You can be assured that our Trust professionals are trained and understand that they are managing your estate. They are heavily regulated to carry out your wishes fully, giving you peace of mind.
The following services are offered through the South Valley Trust Department. Please see a full description of each at the top of this document:
Estate Planning and Consultation
Personal Representative of an Estate – Executor/Administrator
Living Trust – Revocable or Irrevocable
Testamentary Trust
Conservatorship
Property and Investment Management Agency
Custodial Account
Rollover IRA – Self-Directed and Specialty Assets
Charitable Gift or Portfolio Management
Free Trust and Estate Consultation
For a free consultation on Trust and Estate services, please contact the SVBT Trust Department.
Some investment products are offered through Trust Services:
Investment products offered by SVBT Trust Services are not a deposit, not FDIC-insured, not insured by any federal government agency, not guaranteed by the bank, and may go down in value.
Pre-Retirement - Health and Wellness
Exercise
As we grow older, we start to think more about exercise and ways we can improve the quality of our life. If you’ve been exercising, you most likely have a good plan in place.
If you haven’t been exercising, there are professionals to help tailor a plan specifically for your needs. Unfortunately, exercise may not be as easy as it was in our earlier years!
Be sure to consult your Physician before you begin any exercise routine and ask for a referral to refer a personal trainer or ask your friends and family who they recommend.
The key to staying with an exercise program is designing a routine you enjoy and one that you can manage physically. Hiring a professional to help you create the right program can benefit you in the long run. For more information on exercise and designing a program for you, visit the following websites:
The balance of these six elements is unique to each individual. Talk to your primary care provider to determine the best balance for a healthier you. In the meantime, WebMD.com suggests these tips to keep your meals healthy:
Keep it simple
Be salad savvy
Have a filling first course
Drink daintily
Pass on bread
For more on these six tips and to read more information on maintaining a healthy diet, check out the following websites:
Vitamins and Minerals
Vitamins and minerals are essential to good health and are needed for normal growth. While most vitamins and minerals are obtained through a healthy diet, you may need to take a daily supplement to make sure you’re getting everything you need. Since different levels of vitamins and minerals vary by age and gender, it is important to select the multi-vitamin that best suits your age. Consult your physician before beginning a vitamin and mineral supplement. The following website gives more information on vitamins and minerals:
Reducing Stress
Stress is an unavoidable aspect of everyone’s life. However, there are proven techniques designed to help reduce stress in your life. WebMD.com recommends trying the following list to reduce stress in your life:
Keep a positive attitude
Accept that there are events that you cannot control
Be assertive instead of aggressive
Learn and practice relaxation techniques
Exercise regularly
Eat healthy, well-balanced meals
Get enough rest and sleep
Learn to manage your time more effectively
To learn more about these techniques and others, please visit the following link:
Children’s Health
It is every parent’s top priority to keep their children healthy. Grandparents also often play a role in caring for their grandchildren and have this same priority. WebMD.com has tips on keeping these children healthy. The following are a few of the topics WebMD.com covers on their website:
Immunizations
Healthy weight calculator
30 tips for keeping kids healthy
Children’s health questions and answers
Children’s health glossary
Best and worst kids meals
Visit the following website for detailed information on maintaining your child or grandchild’s health:
Time Management
We all wish that we could add more hours to our days. It seems that there is always more to do than time allows. Effective time management strategies can make each of our lives less chaotic. Try these time management tips provided by WebMD.com:
Make a time diary
Learn to say “No”
Create a time-based to-do list
Let your computer help
Multi-task
Don’t be a perfectionist
Reward yourself
For more detail on these tips and other time management articles, visit the website listed below:
Health Education and Seminar Links
Health education and seminars are provided by local medical facilities and are available to the public. Please visit the following links or contact the numbers listed below to find out about health education and seminars in your area:
Referral Links
Please call the numbers listed below or visit the following links for questions or concerns involving mental health issues and counseling, alcohol and drug abuse, gambling addiction, tobacco addiction and other health and mental health concerns:
Finally ready to buy that vacation home you always wanted? Or are you interested in investing in rental properties? Would you like to explore the idea of renting out your home and downsizing into something more manageable? Read on for more information!
Home Equity Loans
South Valley Bank & Trust makes home equity loans. For more details on our home equity options, contact your Personal Banker.
Bankrate.com has an article explaining equity and how you can utilize it to make home improvements, pay off college loans or consolidate debt:
Maintenance/Home Improvement
You may be adding on your dream bathroom or simply replacing a broken towel rack, either way, owning a home can quickly become an ongoing project. Carefully budgeting for large improvements and selecting improvements that increase your home’s equity are your best choices. You can save money by doing certain projects yourself, but other more dangerous or complicated projects should be left to the professionals. For projects within your scope of expertise and even free classes, visit your local home improvement centers:
Selling Your House
Perhaps you are upgrading to a larger space or downsizing now that the kids have gone to college. Whatever the reason, selling your house is a big project and, with professional guidance, can be less stressful.
Additional Homes
Finally ready to buy that vacation home you always wanted? Or are you interested in investing in rental properties? Be sure to talk to the bank and get pre-qualified. This will provide you with shopping options and make your offers more credible!
The following link may be helpful:
Rentals/Being a Landlord
Many areas have a rental association that can provide you with any number of rental forms designed specifically to comply with Oregon laws. Membership often includes invitation to monthly meetings where tips are shared on property ownership, maintenance and dealing with tenants. Here are a few links that may be helpful:
The Federal Trade Commission (FTC) estimates that as many as ten million Americans have their identity stolen each year…
As your bank, we want to help protect you against such fraud. With a few precautions, you can save yourself countless hours of trying to restore your identity, avoid financial loss, preserve your credit rating and most of all, save yourself from the stress it creates.
What is identity theft? According to the FTC, identity theft occurs when someone uses your personally identifying information, such as your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes. Identity theft is a serious crime that is on the rise in the United States. Oregon is no exception.
Consumers can spend thousands of dollars and countless hours restoring their identity. Therefore, it is important to take the necessary steps to protect your identity. The FTC recommends the “3-D’s” of identity theft protection: Deter, Detect, and Defend.
Deter:
Shred financial documents and paperwork with personal information
Protect your Social Security number
Don’t give out personal information over the phone, through the mail, or over the Internet, unless you know who you are dealing with
Never click on links in unsolicited emails (use firewalls, anti-spyware, and anti-virus software)
Don’t use an obvious password
Keep your personal information in a secure place at home
Detect:
Be alert to signs that require immediate attention
Inspect your:
Credit report
Financial statements
Defend:
Place a fraud alert on your credit report and review the reports carefully
Close accounts
File a police report
Report your complaint to the Federal Trade Commission
For more information on identity theft and the FTC’s 3-D’s of identity theft protection, visit the following links:
At South Valley Bank & Trust, we go to great lengths to protect your identity and your accounts. Here are a few things we do:
First, we handle our client information very carefully and confidentially.
Secondly, we make sure who we’re dealing with! Although we try to know all of our clients by sight, we may need to occasionally ask a few questions or ask for identification to verify that you are the account owner. It’s better to be safe than sorry!
Finally, we make sure our system is safe and that no one can get to your account by hacking their way through using technology.
If you have any concerns whatsoever regarding your South Valley Bank & Trust accounts, please don’t hesitate to ask. Please let us help you with answers to your questions and any solutions you may need for safeguarding your hard earned assets - one of those being your identity! We mean it when we say its, “Your Business First.” We are here for you!
Pre-Retirement - Insurance
Auto Insurance
Automobile insurance is required by law and a lack of insurance is punishable by enormous fines and possibly a one year jail sentence.
Finding and maintaining insurance is a priority when you own a car. For insurance requirements by state, visit the Unofficial Guide to the DMV’s website, http://www.DMV.org.
The following eight items are things you need to know about auto insurance as provided by Insurance.com:
Determine appropriate coverage
Shop around for insurance
Look for insurance discounts
Consider taking a higher deductible
Look into stacking coverage if you file a claim
Check with your insurance company before you buy a vehicle
Notify your auto insurance company immediately if you change auto insurance companies
Pick the insurance payment option that best fits your budget
There are many auto insurance companies. A search in your local yellow pages under “Insurance” should provide you with a list of local resources.
The following are links to a few auto insurance companies as well as websites with more information on auto insurance:
Health Insurance
Health insurance is beneficial for individuals at all ages. You might still be in good health. But what if you were to be in a serious accident or suddenly become diabetic? Healthcare costs are expensive and can quickly force a person into inability to pay, or even bankruptcy.
Employer Health Insurance
Many employers offer health insurance coverage. Be sure to sign up as the premiums are generally lower because they are part of a group rate. Even co-payments are probably less expensive than finding your own health insurance. Be sure to ask your employer about setting aside pretax dollars to help offset the cost. Many employers have a Flexible Spending Plan for healthcare premiums, out of pocket healthcare expenses and even daycare expenses!
Health Insurance Resources
Health insurance terms and conditions can be confusing and often overwhelming, but there are resources available to help navigate through the confusing terms and find the best coverage for you. CNNMoney.com recommends these top ten things you need to know about health insurance:
Insurance costs a lot, but having none costs more
If your employer offers insurance, grab it
Comparing plans is tough, but necessary
The lowest premium isn’t always the cheapest plan
Even good coverage can have big loopholes
You’ll pay more for freedom
You can check out networks before signing up
You can keep your insurance if you lose your job
Working couples have more to think about
Tax breaks can help
For more information on other health insurance information, as well as price quotes and a discussion of the healthcare legislation passed in early 2010, visit the following websites:
Life Insurance
Life insurance is a valuable investment in your future and the future of your loved ones. While it can be difficult to think about your death, it is important to consider the well-being of those you could possibly leave behind. There are several life insurance options:
Term Life Insurance
Return of Premium
Whole Life Insurance
Survivorship
Universal Life Insurance
Mortgage Life Insurance
Many employers offer Life Insurance or offer the opportunity to sign up through a vendor they recommend. Be sure to ask!
For more information on the above types of life insurance and to obtain life insurance price quotes, visit the links below:
Long Term Care Insurance
Long Term Care insurance (LTC)is designed to provide assistance to individuals with daily living activities when they are medically unable to do them on their own. This can be very helpful to those without access to care otherwise. Still relatively new, it is becoming more popular.
Long Term Care Insurance provides coverage for certain needs that health insurance does not cover. Some of those needs include:
In-home assistance with daily activities: bathing, dressing, eating cleaning.
Each plan is different and may include:
In home care
Adult daycare
Assisted living (in assisted living facility)
Nursing home care
The older you are when you take out coverage, the more expensive the premiums become. For more information on Long Term Care Insurance and to obtain price quotes, contact a representative from a listing under “Insurance” in your local yellow pages or visit:
Home Insurance
Be sure you have renter’s insurance or home owner's insurance! Anyone could trip on your property and sue you, even a solicitor. Review on an annual basis your coverage with your agent. Consider increasing your liability, especially if you have a pool, pond or other dangerous situation. As an example, your child’s or grandchild’s playmates could fall into deep water and not be able to swim. Please refer to the Housing section in the Resource Center for more information and appropriate resources.
Pre-Retirement - Managing Your Money
Banking Terms
The language of banking doesn’t have to be confusing. At South Valley Bank & Trust, we are always willing to explain any term to you. If you have a question, please ask and we will provide the answer. We want you to understand your account and its features completely. For additional resources on banking terms visit the sites below:
Saving
It’s important to continue saving at this point in life. Retirement may be just around the corner and while it is important to pay off your debt, it’s important to save for retirement and other living expenses. Tips:
Stick to your budget. If you don’t have one, create a budget
“Pay yourself first” – don’t pay yourself what is left over at the end of the month. What this means is making a “payment” to your savings account before you use the money for other reasons.
Take advantage of bank technology – use automatic transfers from your checking to your savings accounts.
Determine your actual “needs” versus “wants.” This requires some discipline!
Another good idea is to make a list of all the things you want to save for, such as:
Emergency funds for car repairs or family medical costs
Purchase of new vehicle
Vacation or other travel plans
Child’s college education
Remodel
Retirement Savings
If you haven’t started saving for retirement through an IRA or employer sponsored IRA, begin immediately! Even if you have already been saving, consider increasing the amount and putting aside as much as you can...you still have time to benefit from compounding interest. Consider this example:
If you saved an average of $250 a month in an IRA starting at age 50 and earned an average rate of return of 8%, you would have $87,973 before taxes by age 65.
If you saved an average of $500 a month in an IRA starting at age 50 and earned an average rate of return of 8%, you would have $176,946 before taxes by age 65.
If you continued to save $500 a month in an IRA earning the same rate for 5 more years, your account would be worth $296,538 age 70. Even 5 years of additional compounding makes a difference - $119,592 more!
It pays to save as much as you can and the sooner the better! If you can’t afford $250 per month, start where you can. Be sure to use the Retirement Calculator in the Resource Center to calculate your age and possible saving scenarios.
This will help you in budgeting and determine what type of saving account you want to open.
Savings Options
There are a number of options available to help you with your savings goals. South Valley Bank & Trust offers:
Traditional savings accounts
Money Market accounts for adults
A unique Money Market account for kids as a benefit of your BANKING FOR Life account
Certificates of Deposit (CD’s). (With this account, you earn an extra .25%)
These four savings options are FDIC insured up to the current FDIC limit. Consult your local branch for current FDIC limits and to determine the savings option that best suits your needs. Be sure to explore our Personal Finance section.
More about Kids Club Money Market
If you are a BANKING FOR Life client and have a Money Market account of your own, you can set up a Kids Club Money Market account for your child or grandchild under age 18. Be sure to talk to your Personal Banker to find out more. Your grandchild could earn substantially more money on even a small savings amount with no account fees!
FDIC
We are sure you have heard of the Federal Deposit Insurance Corporation (FDIC). The FDIC is an independent agency of the United States government that protects you against the loss of part or all of your deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the US government.
Would you like an easy way to calculate your FDIC insurance coverage for each FDIC-insured bank where you have deposit accounts?
We are here to help. You can always check with your local branch and Personal Banker to help assess the best way to structure your deposits to maximize coverage.
If you would like to calculate this yourself, the FDIC created this easy to use EDIE Calculator that will help you calculate this information in a printable form for each bank you bank with.
Perhaps you have some specific questions about FDIC coverage. Are you unsure of what types of accounts are eligible for FDIC insurance? Are you confused about the coverage on single accounts vs. joint accounts? Would you like to know what is meant by certain retirement accounts? The following link will answer these questions and more!
South Valley Wealth Management is an affiliate of South Valley Bank & Trust. Their excellent licensed Investment Brokers can offer investment advice and brokerage services for investment options and retirement savings. There is no fee for a consultation. There is a representative in your area and a no obligation appointment can be easily made through your branch or by calling them directly.
Note: Investment products offered by South Valley Wealth Management are not a deposit, not FDIC-insured, not insured by any federal government agency, not guaranteed by the bank, and may go down in value.
The following websites have more information on saving:
Tax Planning
Each year we look for new and creative ways to reduce our tax liability. It is important to have a tax plan in place to avoid last minute stress during tax season. There are several resources available to help with tax planning. Visit the links below to begin developing your plan today:
Budgeting
Budgets are important at any age. Having the discipline to live within your means, while saving for special purchases and events can lead to a much more fulfilling and stress free life.
The following are websites to help you to create a budget:
Be sure to reference our Financial Calculators to assist you in your budgeting process.
Marriage and Money
It’s not uncommon to see couples getting married at this point in life. While it’s exciting to start a new life with your loved one, it is important to be able to discuss your assets and money with your significant other. Kiplinger.com suggests these ten questions to ask before saying “I Do”:
Where would you like to be in five or ten years?
What are our assets and liabilities?
Should we keep our finances separate or combine them?
What about our investments?
How will we handle daily spending decisions?
Who will be responsible for paying the bills and preparing the taxes?
What is your tolerance for financial risk?
What are our insurance options?
How does your credit report look?
How will we tackle existing debt?
Don’t worry – if you have already tied the knot there is advice for you too. For more information on the questions above and more resources on marriage and money visit the links below:
Divorce and Money
Divorce is never a situation anyone plans for and is certainly painful to go through. When it happens, though, it is important to take care of the financial issues related to divorce immediately. Consider the following steps to a “money-smart divorce” as recommended by MSN Money:
Pull your credit report
Open individual bank, credit, and brokerage accounts
Close all joint accounts
Keep separate property separate
Consider selling the house
Change beneficiaries
Reclaim your name
Check your retirement
Guard your health coverage
For more information on these steps and for other advice on handling the financial issues surrounding a divorce, visit the following websites:
The FTC (Federal Trade Commission) site has information for you, whether you’re shopping for a mortgage or auto loan, checking the accuracy of your credit report, dealing with debt collectors, or looking for ways to protect your personal financial information: http://www.FTC.gov
The Credit Education Bureau’s mission is to aggressively reach out to the community of consumers with important credit information, and good money management training which will result in a whole new market segment of "smarter" consumers: http://CreditEducationBureau.com
FTC’s “Getting Credit: What You Need to Know About Your Credit” provides tips on shopping for credit cards, using cards carefully, and keeping your credit record clean. In addition, it explains credit reports and credit scores, how to protect your identity, improve your credit record, and what to do if you are a victim of identity theft. It's a source of information for people learning about credit: http://www.FTC.gov
The Federal Reserve Bank of San Francisco’s “How to Establish, Use, and Protect Your Credit” publication explains how credit is an important financial tool, but it can also be dangerous, leading people into debt far beyond their ability to repay: http://www.FRBSF.org
The Federal Reserve created an excellent website dedicated to educating consumers on credit card offers, terms and fees. http://www.federalreserve.gov/creditcard
Credit Rights
As a consumer you need to understand how credit is awarded or denied and what you can do if you are treated unfairly. The laws that regulate credit are outlined in this brochure: http://www.FRBSF.org/publications
South Valley Bank & Trust extends loans upon approved credit. South Valley is an equal opportunity lender and adheres to all the state and federal regulations. Besides a number of internal checks and balances, the bank is audited on a regular basis. If you ever have any questions regarding your loan or loan application, please ask us.
Credit Score
If you are applying for credit, the amount you qualify for may be based partly on your credit score. But what exactly is a credit score? A credit score is a number that reflects the likeliness you will pay back the money you borrow. The higher the number, the more likely it is that you will pay the money back.
What is a good credit score & who determines it?
A credit score is a three digit number based on the borrower’s bill-paying history and overall debt profile. The most widely accepted score is the FICO, Fair Isaac Corporation, score. The three major credit reporting agencies, Equifax, TransUnion and Experian use their own models to calculate scores as well. Different creditors use different methods to create their scores and those formulas are proprietary to the companies using them, so defining a good score and bad score can be a gray area.
The following are approximate ranges of credit scores:
Excellent credit = 720 and above
Good credit = 660 to 719
Fair credit = 620 to 659
Poor/bad credit = 619 and below
While we don’t know the exact formulas used to calculate credit scores, FICO has disclosed an approximate breakdown of what makes up a credit score:
Timeliness of payments (payment behavior) = 35%
The amount of revolving debt in relation to the amount of your total revolving credit (how much you owe) = 30%
Length of credit history = 15%
Type of credit used (installment, revolving, consumer finance) = 10%
Amount of credit recently obtained and recent searches for credit = 10%
How do you find out what your credit score is?
You may have received a free credit report and noticed it does not include a credit score. Often, the credit score is not included and must be purchased separately. If you are applying for a home loan, the lender is required to give you your credit score.
If your lender will not give you your score, you can contact the following three major consumer credit reporting agencies:
Building Credit
What impacts your score? Certain things can greatly impact your score. Late payments are often a cause of lower scores. One or two is not terrible, but a consistently late payment history will lower your overall score. Other things that can lower your score are bankruptcies, foreclosures, judgments, and collections.
MSN.com’s nine ways to build your credit score from scratch:
Repairing Credit
If your score is not where you want it to be, do not despair. With time and a sincere effort to improve your score you can be on the road to repairing your credit score. Here are some steps that may help you to improve your score:
Pay your bills on time.
Pay down your balances. Don’t keep your cards maxed out. It will lower your score.
Pay off your debt instead of balance transferring. Moving debt around and opening new cards can lower your score. Your best bet is to pay the debt you have down, not just spread it out.
Don’t open multiple accounts you don’t need. Too many open accounts can lower your score.
Don’t close all your accounts. Yes, you want to pay off your debt, but closing all your accounts can lower your score. Having installment loans with on-time payments will raise your score. Use your cards…just do so responsibly.
Review your credit report for any discrepancies and repair them if necessary.
Create a budget and stick to it. Don’t live on credit. Living beyond your means and spending money you don’t have will never allow you to live debt free. Learn to examine each purchase from the perspective of “need” vs. “want.”
If you are in over your head, contact a legitimate credit counselor.
Read MSN Money’s helpful article with 7 fast fixes for your credit score:
The Federal Trade Commission has information available on how to build a better credit report. The site has information on how to legally improve your credit report, dealing with debt and more: http://www.FTC.gov/bcp
Monitoring Your Credit
The 2004 FACT Act (Fair and Accurate Credit Transactions Act) entitles all U.S. residents to receive a free credit report every 12 months from each of the three credit bureaus. Checking your credit report once a year is a good way to correct any errors and make sure you have not been a victim of identity theft.
To request your free reports through a centralized source:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Phone: (877) 322-8228 www.AnnualCreditReport.com
You will want to review all three. Why? The reports can have different information in each of them since the report system is voluntary. The creditors subscribe to whichever agency they want, if they subscribe at all. Some creditors may not even report to any of the agencies and will not show up on your credit report.
What to look for:
Review your personal information- name, social security number, date of birth, addresses and employers.
Check that all closed accounts are closed.
Check that all open accounts are accounts you opened.
Check that nothing is on the report longer than what is allowed by law; bankruptcies must be removed after 10 years. Suits, judgments, tax liens, arrest records, and most other unfavorable information must be dropped after 7 years.
Check over any information on late payments and make sure they are not mistakes.
Consumer Protection publications available from the Federal Reserve:
Retirement
Retirement is definitely on the horizon, although it may still be a few years away. Hopefully by now, you have been setting money aside for retirement. If so, don’t stop! In fact, consider increasing the amount you are setting aside and look into any additional advantages you may have by law in your defined retirement contribution if you are over age 50.
If you haven’t already done so, now is an excellent time to do some formal planning with your investment advisor and with a Financial Planner. It’s important to understand your future needs and determine if your plan is where it needs to be. We recommend a FREE consultation with our affiliate, South Valley Wealth Management. Any of our branch employees can make an appointment for you.
6 easy tips to get yourself on the retirement path:
Start early. The earlier you begin, the more time you have on your side. Time combined with decent interest rates and smart investment choices can mean the difference between a comfortable retirement and never retiring.
Plan for the longest life you can imagine. Many people don’t realize that they can live more than 30 years after they retire!
Create a plan. Meet with a trained financial planner. It’s important to understand your true needs. What is your salary, how much do you spend, how much will you earn over time and how much do you need to be investing to reach your long term goals? A professional can help you create a plan that can help get you there. South Valley Wealth Managementis an affiliate of South Valley Bank & Trust and can provide a free investment consultation. There is a representative in your area and a no obligation appointment can be easily made through your branch or by calling them directly.
Note: Investment products offered by South Valley Wealth Management are not a deposit, not FDIC-insured, not insured by any federal government agency, not guaranteed by the bank, and may go down in value.
Contribute. You have to put money away for it to grow. All the planning in the world won’t equal a nice retirement if you forget to actually put money into it. Set a goal (see above) and contribute monthly, weekly, annually or whatever works best for you - but DO IT! A small contribution is better than no contribution at all.
Get rid of the debt. This time of life can certainly be challenging and money may be tight. However, work towards paying off your debt as soon as you can. Don’t carry credit cards, student loans, car loans and mortgages longer than you must. This does not necessarily mean paying off all your debt before you begin saving for retirement. With credit such as home loans and student loans, this may not be realistic. Just keep in mind that eventually you want to get out of the debt all together.
Preparing for retirement can leave you with a lot of questions. The following sites are sources of information to help you prepare for the exciting and upcoming new chapter in your life:
Caring for Aging Parents
As we age, our parents are aging too and eventually they will need additional resources to care for themselves. It may be important to be prepared to step in and help care for them. Sometimes this includes financial resources as well as care giving resources. Kiplinger.com suggests the following steps to help aging parents:
Know your parents’ income and assets
Be prepared if parents become incapacitated
Determine where parents will live
Determine how to proceed when parents need financial help
For more information and resources in caring for aging parents visit the following websites:
Social Networking
Social networking websites are the rage these days. Meeting people online or tracking down former friends is common. The following are a few of the social networking sites today:
Enjoy these sites. But remember that although you are not a youngster, you could still put yourself or family at risk. Therefore, don’t reveal personal information online. There have been too many stories of stalkers who created a false image and information.
Also, be careful about the photos and information you put online about yourself and others. Even when deleted, these photos and information remain on the Internet forever. There are more and more employers requiring review of your social networking site before offering you a job.
If you choose to use a site, be sure to use access and use the security settings!
To see information about safeguarding yourself, your family and your computer, check out these sites:
Relationships - Online Dating
The world of online dating has taken off. It can be an easy way to find other single people in your area and potentially meet your soul-mate. The following are a few of the dating sites online:
Relationships - Online Dating Seniors
Are you tired of looking through the sites that don’t cater to your age or your needs? The following are a few of the senior dating websites available:
Social Activities
When making plans with friends or sharing your latest interests, the Internet is a great resource for everything from movie times to the latest music to local events for memorable time with friends. The following sections contain websites that may be of help in planning a great get together.
Movies
Are you interested in finding out what is playing in your area? Here are some sites to help you check out the latest movies and even get your seats before you arrive:
Interested in movie trivia? Wishing you could remember what movies your favorite star has been in? Check out the Internet Movie Database or IMDB. It’s the Hollywood insider way to check the résumé of directors and stars.
Movies & Media for Grandchildren
If you have children or grandchildren, are you concerned with the types of movies they watch? Kids-in-mind.com provides objective and complete information about a film's content, so you can decide, based on your own value system, whether a movie is appropriate for your grandkids.
Movies, Music, Video Games… children are surrounded by media. It’s challenging to stay on top of what is appropriate and what is not. Common Sense Media is a national organization led by concerned individuals with experience in child advocacy, public policy, education, media and entertainment. Common Sense Media’s website sorts through the various forms of media your grandchild may be exposed to and helps you to arrive at your own conclusion as to what you feel your grandchildren are ready to experience.
Music
Do you love music? Here are a few sites to keep you up to speed on the latest music talent:
Are you ready to get into the downloading craze? You can do it! Do you want to be able to create your own playlists? How about being able to download your favorite podcasts and listen to them at your leisure? Apple created iTunes for this purpose. For more information and to be able to download the application, visit their website. Be warned, you might just find yourself buying an ultra cool iPod and becoming a download junkie!
Have you dreamed of being a soccer manager? Why not try starting a team in a lower division and slowly bring them up the ranks. Even if it’s a virtual reality, it’s still pretty cool. http://www.HatTrick.org
This site allows you to see the score for any major soccer game anywhere in the world! http://www.LiveScore.com
Basketball
Is basketball your sport of choice?
The following website offers video clips, news and stats: http://www.NBA.com
Football
Do you and the pig skin have a special relationship on most Sunday afternoon and Monday nights?
ESPN
Are you an all around sports lover? Check out ESPN’s site, which happens to be one of the biggest sports websites in the world and covers all major sports:
Live Games
The Internet is a fantastic resource for keeping up with your favorite teams and high-definition televisions make you feel like you’re at the game, but nothing compares to seeing a live game. StubHub.com offers tickets to nearly every sporting event in the U.S.!
For Grandparents
Social Networking Safety
Social networking sites have become a mainstream medium for teens and adults. Although some of these sites are monitored, there is no way to completely prevent your grandchild from the possibility of being exposed to inappropriate content. These sites encourage the exchange of personal information and if a child is not cautious, can be a perfect venue for a predator to take advantage of the child. Parents can teach their children to socialize safely online.
We want you to be aware. Grandparents can also help teach their grandchildren to socialize safely online. Or, you can pass this information along to your grandchild's parents.
The Federal Trade Commission has created a grandparent/parent’s guide to social networking sites:
Grandkids:
Here are some quick tips from the FTC on teaching your grandkids to socialize safely online:
Help your grandkids understand what information should be private.
Use privacy settings to restrict who can access and post on your grandchild’s website.
Explain that kids should post only information that you- and they- are comfortable with others seeing.
Remind your grandkids that once they post information online, they can’t take it back.
Know how your grandkids are getting online.
Talk to your grandkids about bullying.
Talk to your grandkids about avoiding sex talk online.
Tell your grandkids to trust their gut if they have suspicions.
Read sites' privacy policies.
Take extra steps to protect younger kids.
Go where your grandkids go online.
Review your grandchild’s “friends” list.
For More Information: To learn more about staying safe online, visit the websites of the following organizations:
Federal Trade Commission The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit FTC.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC manages OnGuardOnline.gov, which provides practical tips from the federal government and the technology industry to help you be on guard against Internet fraud, secure your computer, and protect your personal information.
Perhaps at this point in your life, you find yourself thinking more about your golf game or lying on the beach on some exotic island. For many, this is a period of having more time if the kids have moved out and having the financial ability to travel. Here are a few sites to help you plan your next trip.
Travel Deal Links
You have saved money and vacation time; now you want to figure out where to go and how to get the best trip for your money. Using a travel agent can be very helpful and will definitely give some people better peace of mind. And it’s possible that a travel agent can get last minute seats on booked flights if they have the right relationship with the vendor.
If saving money is important, you can also research and book your own vacation or travel. There are plenty of websites and services available to help plan the trip you want. Here are a few links for deals and information:
Two of the websites featured in the above CNN article are “aggregators” which allow you to compare flight prices from several travel websites at the same time. Try www.sidestep.com or www.kayak.com.
Educational Tours
Discover more than 8,000 educational tours in 50 states and over 90 countries with Elderhostel, the not-for-profit leader in educational travel since 1975. Local and renowned experts guide visitors to experience in-depth and behind-the-scenes learning opportunities. Elderhostel is America's first and the world's largest educational travel organization for adults 55 and over: http://www.ElderHostel.org/
Affordable Travel
Are you worried about your budget? Bankrate.com offers five tips to affordable retirement travel:
Traveling with Grandkids
Are you interested in traveling with your grandchildren? Grandparents.com has information on enjoying your grandchildren and different travel ideas to experience with them:
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