In order to spend time with our family and friends during this holiday season, Austin Bank will be closed Monday, December 26, and
Monday, January 2. Please use one of our many convenient ATMs during this time. We wish you a very Merry Christmas and Happy New Year!
Thursday, December 22, 2011
Monday, December 19, 2011
2011 Austin Bank Stars
Congratulations to our 2011 Star of the Month employees! These employees are nominated by their peers and recognized for their teamwork, high standards of ethics and morals, positive attitude, community involvement, and their commitment to Austin Bank. Our 2011 Stars are:
- Jaleea Hudnall
- Lisa Hale
- Lisa McCoy
- Natalie Lynch
- Jason Arnold
- Janis Adams
- Elena Gomez
- Betty Witherspoon
- Jessica Guerrero
- Rhonda Pierce
- Shaunna Nolen
- Claudia Rogers
Congratulations Austin Bank Stars!
Wednesday, December 14, 2011
Austin Bank Employees Honored
Austin Bank honors 40 employees for their outstanding work and years of service at their 2011 Service Award Luncheon.
"We are proud of all these employees because they work as a team serving our friends, neighbors and the businesses located here in East Texas," said Austin Bank Vice Chairman, Jeff Austin III. "They are the key to our bank's success. Each one takes pride in their performance; and continually strives to provide excellent service to our bank customers."
"At Austin Bank our employees are the difference and perpetuate Austin Bank's legacy. Each one has earned and deserves this recognition for their dedicated commitment to the bank and its customers. We are proud of their contributions and accomplishments," said John P. Williams, President and CEO.
This year's annual luncheon recognized Austin Bank employees who completed five, 10, 15 and 20 years of service in 2011. The employees were honored at a luncheon held on December 7 at Willow Brook Country Club in Tyler. The honored group of 40 employees makes up a combined total of 345 years of experience. The group included:
Twenty Year Service Award
Debbie Braune, Vice President/Risk Management in Whitehouse
John P. Williams, President/CEO in Jacksonville
Fifteen Year Service Award
Laurie Adams, Customer Service Representative in Tyler
Pat Davis, Vice President/Senior Operations Officer in Garrison
Donna Higginbotham, Retail Office Manager in Timpson
Kathy Newton, Loan Assistant in Frankston
Frank Still, Regional President in Nacogdoches
Ten Year Service Award
Judy Adams, Teller in Grand Saline
Abigayle Berry, Teller Operations Supervisor in Longview
Leann Chamberlain, Loan Assistant in Longview
Melissa Cole, Computer Tech in Longview
Debra Curbow, Teller in Garrison
Shane Davenport, Network Administrator in Whitehouse
Carla Henry, Customer Service Representative in Palestine
Dennis Means, Operations Officer in Longview
Billie Mims, Vice President/Community Lender in Kilgore
Brenda McMichael, Customer Service Representative in Frankston
Luti Ortega, Loan Assistant in Jacksonville
Kim Raney, Senior Vice President/Credit Analyst in Longview
Minerva Valle, Loan Assistant in Tyler
Five Year Service Award
Jason Arnold, Staff Accountant in Jacksonville
Carmen Camacho, Customer Service Representative in Kilgore
Josie Chaffins, Teller in Palestine
Kerrie Covert, Location President in Tyler
Michelle Cox, Customer Service Representative in Whitehouse
Toni Davis, Retail Office Manager in Tyler
Dawn DeVillers, Executive Administrative Assistant in Jacksonville
Karen Faulkner, BSA Officer in Frankston
Debbie Haddock, Retail Office Manager in Gilmer
Letha Harold, Teller in Tyler
Chad Hinton, Loan Officer in Longview
Lisa Hubbard, Teller Operations Supervisor in Gilmer
Jaleea Hudnall, Loan Assistant in Rusk
Barbara Johnson, Loan Assistant in Gilmer
April Laughlin, Customer Service Representative in Gladewater
John Mebane, Location President in Emory
Donna Reynolds, Loan Documentation Specialist in Whitehouse
Diana Vazquez, Bookkeeping Clerk in Longview
Patsy Vaughn, Teller in Whitehouse
Tammie Welch, Bookkeeping Clerk in Longview
Austin Bank is a community bank with $1.2 billion in assets. Headquartered in Jacksonville, Texas, Austin Bank serves the finanicial needs of East Texas families and businesses throughout 31 locations in 21 citites and ten counties. More information about Austin Bank can be found on the bank's website at www.austinbank.com .
"We are proud of all these employees because they work as a team serving our friends, neighbors and the businesses located here in East Texas," said Austin Bank Vice Chairman, Jeff Austin III. "They are the key to our bank's success. Each one takes pride in their performance; and continually strives to provide excellent service to our bank customers."
"At Austin Bank our employees are the difference and perpetuate Austin Bank's legacy. Each one has earned and deserves this recognition for their dedicated commitment to the bank and its customers. We are proud of their contributions and accomplishments," said John P. Williams, President and CEO.
This year's annual luncheon recognized Austin Bank employees who completed five, 10, 15 and 20 years of service in 2011. The employees were honored at a luncheon held on December 7 at Willow Brook Country Club in Tyler. The honored group of 40 employees makes up a combined total of 345 years of experience. The group included:
Twenty Year Service Award
Debbie Braune, Vice President/Risk Management in Whitehouse
John P. Williams, President/CEO in Jacksonville
Fifteen Year Service Award
Laurie Adams, Customer Service Representative in Tyler
Pat Davis, Vice President/Senior Operations Officer in Garrison
Donna Higginbotham, Retail Office Manager in Timpson
Kathy Newton, Loan Assistant in Frankston
Frank Still, Regional President in Nacogdoches
Ten Year Service Award
Judy Adams, Teller in Grand Saline
Abigayle Berry, Teller Operations Supervisor in Longview
Leann Chamberlain, Loan Assistant in Longview
Melissa Cole, Computer Tech in Longview
Debra Curbow, Teller in Garrison
Shane Davenport, Network Administrator in Whitehouse
Carla Henry, Customer Service Representative in Palestine
Dennis Means, Operations Officer in Longview
Billie Mims, Vice President/Community Lender in Kilgore
Brenda McMichael, Customer Service Representative in Frankston
Luti Ortega, Loan Assistant in Jacksonville
Kim Raney, Senior Vice President/Credit Analyst in Longview
Minerva Valle, Loan Assistant in Tyler
Five Year Service Award
Jason Arnold, Staff Accountant in Jacksonville
Carmen Camacho, Customer Service Representative in Kilgore
Josie Chaffins, Teller in Palestine
Kerrie Covert, Location President in Tyler
Michelle Cox, Customer Service Representative in Whitehouse
Toni Davis, Retail Office Manager in Tyler
Dawn DeVillers, Executive Administrative Assistant in Jacksonville
Karen Faulkner, BSA Officer in Frankston
Debbie Haddock, Retail Office Manager in Gilmer
Letha Harold, Teller in Tyler
Chad Hinton, Loan Officer in Longview
Lisa Hubbard, Teller Operations Supervisor in Gilmer
Jaleea Hudnall, Loan Assistant in Rusk
Barbara Johnson, Loan Assistant in Gilmer
April Laughlin, Customer Service Representative in Gladewater
John Mebane, Location President in Emory
Donna Reynolds, Loan Documentation Specialist in Whitehouse
Diana Vazquez, Bookkeeping Clerk in Longview
Patsy Vaughn, Teller in Whitehouse
Tammie Welch, Bookkeeping Clerk in Longview
Austin Bank is a community bank with $1.2 billion in assets. Headquartered in Jacksonville, Texas, Austin Bank serves the finanicial needs of East Texas families and businesses throughout 31 locations in 21 citites and ten counties. More information about Austin Bank can be found on the bank's website at www.austinbank.com .
Tuesday, December 13, 2011
Reward Yourself!
Reward yourself by inviting your friends to Austin Bank - www.austinbankrewards.com
Monday, December 12, 2011
Attention Business Customers
How can Austin Bank help your business?
Austin Bank's Treasury Management Services offer a full line of financial tools and information to help you manage your cash flow and achieve your financial goals.
Let us show you how to:
Austin Bank's Treasury Management Services offer a full line of financial tools and information to help you manage your cash flow and achieve your financial goals.
Let us show you how to:
- Pay your employees through Direct Deposit
- Collect fees from customers electronically
- Concentrate funds to your Austin Bank accounts
- Efficiently process credit cards
- Deposit checks electronically from your office
For more information about these Treasury Management Services, email us at tmservices@austinbank.com .
Monday, December 5, 2011
The Latest on Social Security
Benefits increase for 2012. Ideas for reform are numerous.
Presented by Austin Bank Financial Services
Social Security gets its first COLA since 2009. As moderate inflation has made a comeback, the federal government has decided to boost Social Security benefits by 3.6% for 2012. This means an average increase of $39 per month for 55 million Social Security recipients ($467 for all of 2012). Also, more than 8 million Americans who get Supplemental Security Income will get $18 more per month ($216 for 2012).1
There are two things to note in the fine print.
· A COLA increase in Social Security means that Medicare premiums can also increase. Much of the 2012 COLA adjustment could effectively be eaten up this way, as Medicare premiums are automatically deducted from Social Security checks. (2012 Medicare Part B premiums should be announced before the end of October.)1,2
· Businesses should note that the Social Security wage base will rise to $110,100 for 2012. Currently, the federal government levies payroll tax on the first $106,800 of income; next year, that ceiling rises by $3,300. This means about 10 million more high-earning Americans will be subject to the payroll tax, which could vary anywhere from 3.1% to 6.2% in 2012 depending on legislative action (or inaction).1,2
Will the “super committee” of 12 make cuts to the program? It’s uncertain; the deadline for the long-term budget reform plan from Congress falls on November 23, and the bipartisan and Joint Select Committee on Deficit Reduction (a.k.a. the “supercommittee”) has been meeting more or less in secret, with AARP and other lobbyists pressuring them not to cut Social Security and Medicare.5
How might Social Security address its long-term shortfall? Proposals abound, from simple fixes to radical reforms.
· President Obama’s fiscal commission has suggested raising the FICA cap. In this proposal, the payroll tax cap would gradually increase between now and 2050 so that 90% of wages earned in America would be subject to Social Security tax by the middle of the century. (This is how it used to be.) Under this plan, the taxable maximum would be $190,000 by 2020.2
· Rep. Paul Ryan (R-WI), Chair of the House Budget Committee, has authored the GOP’s “Path to Prosperity” plan, the so-called “Ryan roadmap” that would encourage workers under age 55 to direct some of their payroll taxes into personal retirement accounts. Rep. Ryan’s proposal would also index initial Social Security benefits for most retirees to price growth instead of average wage growth and set the age for Social Security eligibility at 67.3,4,5
· The conservative Heritage Foundation suggests a 5-year strategy in its Saving the American Dream proposal, which calls a reduction in Social Security benefits for the richest 9% of retirees, a $10,000 tax exemption for all who work past the federal retirement age, and the near-term elimination of taxation of Social Security income.6
· Republican presidential candidate Herman Cain has proposed replacing Social Security with the “Chilean model”. In the early 1980s, Chile’s government ended its retirement entitlement program and put retirement planning solely in the hands of individuals, who maintain personal retirement investment accounts and set their own contribution levels and retirement dates. Investor’s Business Daily notes that on average, the program has yielded better than 9.2% compounded annual returns over 30 years.7
· Twelve fixes were suggested in a 2010 report issued by the U.S. Senate Special Committee on Aging, among them:
o A 3% cut in benefits
o Taking the payroll tax to 7.3%
o Hiking the full retirement age to 68 or older
o Increasing the Social Security averaging period that determines SSI
o Reducing the typical yearly COLA by 1% or .5%
o Reducing spousal benefits
o Investing some of Social Security’s trust funds in equities
o Directing some estate tax revenues into Social Security’s trust fund
Perhaps a fix lies somewhere within these proposals; unmodified or altered, alone or in combination.
How much retirement income do you have these days? With Social Security’s future still a question mark, you may be thinking about where your retirement income will come from in the years ahead. A chat with the financial professional you know and trust may be worthwhile before 2012 arrives.
Citations.
1 - businessweek.com/ap/financialnews/D9QFGU602.htm [10/19/11]
2 - money.cnn.com/2011/10/19/pf/taxes/social_security_tax/ [10/19/11]
3 - montoyaregistry.com/Financial-Market.aspx?financial-market=will-you-have-an-adequate-retirement-cash-flow&category=3 [10/21/11]
4 - articles.cnn.com/2011-09-26/politics/politics_gop-paul-ryan_1_ryan-plan-paul-ryan-government-spending/3?_s=PM:POLITICS [9/26/11]
5 - cbpp.org/cms/index.cfm?fa=view&id=3308 [10/21/10]
6 - savingthedream.org/how-it-affects-you/retirees/ [10/21/11]
7 - investors.com/NewsAndAnalysis/Article/586464/201109291833/Cains-Chilean-Model.htm [10/12/11]
8 - money.usnews.com/money/blogs/planning-to-retire/2010/05/18/12-ways-to-fix-social-security [5/18/10]
8 - money.usnews.com/money/blogs/planning-to-retire/2010/05/18/12-ways-to-fix-social-security [5/18/10]
Presented by Austin Bank Financial Services
Social Security gets its first COLA since 2009. As moderate inflation has made a comeback, the federal government has decided to boost Social Security benefits by 3.6% for 2012. This means an average increase of $39 per month for 55 million Social Security recipients ($467 for all of 2012). Also, more than 8 million Americans who get Supplemental Security Income will get $18 more per month ($216 for 2012).1
There are two things to note in the fine print.
· A COLA increase in Social Security means that Medicare premiums can also increase. Much of the 2012 COLA adjustment could effectively be eaten up this way, as Medicare premiums are automatically deducted from Social Security checks. (2012 Medicare Part B premiums should be announced before the end of October.)1,2
· Businesses should note that the Social Security wage base will rise to $110,100 for 2012. Currently, the federal government levies payroll tax on the first $106,800 of income; next year, that ceiling rises by $3,300. This means about 10 million more high-earning Americans will be subject to the payroll tax, which could vary anywhere from 3.1% to 6.2% in 2012 depending on legislative action (or inaction).1,2
Will the “super committee” of 12 make cuts to the program? It’s uncertain; the deadline for the long-term budget reform plan from Congress falls on November 23, and the bipartisan and Joint Select Committee on Deficit Reduction (a.k.a. the “supercommittee”) has been meeting more or less in secret, with AARP and other lobbyists pressuring them not to cut Social Security and Medicare.5
How might Social Security address its long-term shortfall? Proposals abound, from simple fixes to radical reforms.
· President Obama’s fiscal commission has suggested raising the FICA cap. In this proposal, the payroll tax cap would gradually increase between now and 2050 so that 90% of wages earned in America would be subject to Social Security tax by the middle of the century. (This is how it used to be.) Under this plan, the taxable maximum would be $190,000 by 2020.2
· Rep. Paul Ryan (R-WI), Chair of the House Budget Committee, has authored the GOP’s “Path to Prosperity” plan, the so-called “Ryan roadmap” that would encourage workers under age 55 to direct some of their payroll taxes into personal retirement accounts. Rep. Ryan’s proposal would also index initial Social Security benefits for most retirees to price growth instead of average wage growth and set the age for Social Security eligibility at 67.3,4,5
· The conservative Heritage Foundation suggests a 5-year strategy in its Saving the American Dream proposal, which calls a reduction in Social Security benefits for the richest 9% of retirees, a $10,000 tax exemption for all who work past the federal retirement age, and the near-term elimination of taxation of Social Security income.6
· Republican presidential candidate Herman Cain has proposed replacing Social Security with the “Chilean model”. In the early 1980s, Chile’s government ended its retirement entitlement program and put retirement planning solely in the hands of individuals, who maintain personal retirement investment accounts and set their own contribution levels and retirement dates. Investor’s Business Daily notes that on average, the program has yielded better than 9.2% compounded annual returns over 30 years.7
· Twelve fixes were suggested in a 2010 report issued by the U.S. Senate Special Committee on Aging, among them:
o A 3% cut in benefits
o Taking the payroll tax to 7.3%
o Hiking the full retirement age to 68 or older
o Increasing the Social Security averaging period that determines SSI
o Reducing the typical yearly COLA by 1% or .5%
o Reducing spousal benefits
o Investing some of Social Security’s trust funds in equities
o Directing some estate tax revenues into Social Security’s trust fund
Perhaps a fix lies somewhere within these proposals; unmodified or altered, alone or in combination.
How much retirement income do you have these days? With Social Security’s future still a question mark, you may be thinking about where your retirement income will come from in the years ahead. A chat with the financial professional you know and trust may be worthwhile before 2012 arrives.
Citations.
1 - businessweek.com/ap/financialnews/D9QFGU602.htm [10/19/11]
2 - money.cnn.com/2011/10/19/pf/taxes/social_security_tax/ [10/19/11]
3 - montoyaregistry.com/Financial-Market.aspx?financial-market=will-you-have-an-adequate-retirement-cash-flow&category=3 [10/21/11]
4 - articles.cnn.com/2011-09-26/politics/politics_gop-paul-ryan_1_ryan-plan-paul-ryan-government-spending/3?_s=PM:POLITICS [9/26/11]
5 - cbpp.org/cms/index.cfm?fa=view&id=3308 [10/21/10]
6 - savingthedream.org/how-it-affects-you/retirees/ [10/21/11]
7 - investors.com/NewsAndAnalysis/Article/586464/201109291833/Cains-Chilean-Model.htm [10/12/11]
8 - money.usnews.com/money/blogs/planning-to-retire/2010/05/18/12-ways-to-fix-social-security [5/18/10]
8 - money.usnews.com/money/blogs/planning-to-retire/2010/05/18/12-ways-to-fix-social-security [5/18/10]
Friday, December 2, 2011
School Performances in Longview
We invite you to the following performances in the atrium area of our Longview office located at 3400 W. Marshall.
- Tuesday, Dec. 6 at 10 a.m. - Miss Jackie's class from Jordan Country Day School
- Wednesday, Dec. 7 at 10 a.m. - Oak Forest Montessori Elementary
- Thursday, Dec. 8 at 9:30 a.m. - Foster Middle School Orchestra
- Friday, Dec. 9 at 9:30 a.m. - White Oak Middle & High School Honor Choirs
- Tuesday, Dec. 13 at 1:30 p.m. - Trinity School of Texas 4th and 5th grade choir
- Wednesday, Dec. 14 at 1:15 p.m. - Johnson-McQueen Signing Choir and Honors Choir
We hope to see you there!
Wednesday, November 30, 2011
Holiday Event Calendar
Happy Holidays! Below is a list of holiday events, and you are invited! Locate the Austin Bank office near you and find out what activities are taking place. We will update the list periodically as events arise or if changes are made.
- Jacksonville – Thursday, Dec. 1 – at 11 a.m. - Brook Hill Choir will perform, Downtown Bank Lobby
- Rusk – Friday, Dec. 2 from 10 a.m. – 2 p.m. – Christmas Open House, Bank Lobby
- Gladewater – Thursday, Dec. 8 at 9 a.m. – Gladewater Choir will perform, Bank Lobby
- Van – Friday, Dec. 9 from 9 a.m. – 4 p.m. – Customer Appreciation Day
- Grand Saline – Saturday, Dec. 10 from 4 p.m. – 6 p.m. Cocoa & Carols and Parade on Main Street
- Marshall – Friday, Dec. 16 from 11:30 a.m. – 3:30 p.m. – Christmas Open House, Bank Lobby
- Jacksonville – Tuesday, Dec. 20 from 1 p.m. – 4 p.m. – Christmas Open House, Downtown office and South Jackson office
- Gladewater – Friday, Dec. 23 from 9 a.m. – 4:30 p.m. – Christmas Open House, Bank Lobby
Monday, November 28, 2011
How LTC Insurance Can Help Protect Your Assets
Create a pool of healthcare dollars that will grow in any market.
Provided by Austin Bank Financial Services
How will you pay for long term care? The sad fact is that most people don’t know the answer to that question. But a solution is available.
As baby boomers leave their careers behind, long term care insurance will become very important in their financial strategies. The reasons to get an LTC policy after age 50 are very compelling.
Your premium payments buy you access to a large pool of money which can be used to pay for long term care costs. By paying for LTC out of that pool of money, you can preserve your retirement savings and income.
The cost of assisted living or nursing home care alone could motivate you to pay the premiums. Genworth Financial conducts a respected annual Cost of Care Survey to gauge the price of long term care in the U.S. The 2010 report found that
Can you imagine spending an extra $30-80K out of your retirement savings in a year? What if you had to do it for more than one year?
AARP notes that approximately 60% of people over age 65 will require some kind of long term care during their lifetimes. 2
Why procrastinate? The earlier you opt for LTC coverage, the cheaper the premiums. This is why many people purchase it before they retire. Those in poor health or over the age of 80 are frequently ineligible for coverage.
What it pays for. Some people think LTC coverage just pays for nursing home care. That’s inaccurate. It can pay for a wide variety of nursing, social, and rehabilitative services at home and away from home, for people with a chronic illness or disability or people who just need assistance bathing, eating or dressing. 3
Choosing a DBA. That stands for Daily Benefit Amount - the maximum amount that your LTC plan will pay per day for care in a nursing home facility. You can choose a Daily Benefit Amount when you pay for your LTC coverage, and you can also choose the length of time that you may receive the full DBA on a daily basis. The DBA typically ranges from a few dozen dollars to hundreds of dollars. Some of these plans offer you “inflation protection” at enrollment, meaning that every few years, you will have the chance to buy additional coverage and get compounding - so your pool of money can grow.
The Medicare misconception. Too many people think Medicare will pick up the cost of long term care. Medicare is not long term care insurance. Medicare will only pay for the first 100 days of nursing home care, and only if 1) you are getting skilled care and 2) you go into the nursing home right after a hospital stay of at least 3 days. Medicare also covers limited home visits for skilled care, and some hospice services for the terminally ill. That’s all. 2
Now, Medicaid can actually pay for long term care – if you are destitute. Are you willing to wait until you are broke for a way to fund long term care? Of course not. LTC insurance provides a way to do it.
Why not look into this? You may have heard that LTC insurance is expensive compared with some other forms of policies. But the annual premiums (about as much as you’d spend on a used car from the late 1990s) are nothing compared to real-world LTC costs.4 Ask your insurance advisor or financial advisor about some of the LTC choices you can explore – while many Americans have life, health and disability insurance, that’s not the same thing as long term care coverage.
Citations.
1 genworth.com/content/etc/medialib/genworth_v2/pdf/ltc_cost_of_care.Par.85518.File.dat/Executive%20Summary_gnw.pdf [4/10]
2 - aarp.org/families/caregiving/caring_help/what_does_long_term_care_cost.html [11/11/08]
3 - pbs.org/nbr/site/features/special/article/long-term-care-insurance_SP/ [11/11/08]
4 - longtermcare.gov/LTC/Main_Site/Paying_LTC/Private_Programs/LTC_Insurance/index.aspx [6/25/09]
Provided by Austin Bank Financial Services
How will you pay for long term care? The sad fact is that most people don’t know the answer to that question. But a solution is available.
As baby boomers leave their careers behind, long term care insurance will become very important in their financial strategies. The reasons to get an LTC policy after age 50 are very compelling.
Your premium payments buy you access to a large pool of money which can be used to pay for long term care costs. By paying for LTC out of that pool of money, you can preserve your retirement savings and income.
The cost of assisted living or nursing home care alone could motivate you to pay the premiums. Genworth Financial conducts a respected annual Cost of Care Survey to gauge the price of long term care in the U.S. The 2010 report found that
In 2010, the median annual cost of a private room in a nursing home is $75,190 or $206 per day – $14,965 more than it was in 2005.
A private one-bedroom unit in an assisted living facility has a median cost of $3,185 a month – which is 12% higher than it was in 2009.
The median payment to a non-Medicare certified, state-licensed home health aide is $19 in 2010, up 2.7% from 2009. 1
Can you imagine spending an extra $30-80K out of your retirement savings in a year? What if you had to do it for more than one year?
AARP notes that approximately 60% of people over age 65 will require some kind of long term care during their lifetimes. 2
Why procrastinate? The earlier you opt for LTC coverage, the cheaper the premiums. This is why many people purchase it before they retire. Those in poor health or over the age of 80 are frequently ineligible for coverage.
What it pays for. Some people think LTC coverage just pays for nursing home care. That’s inaccurate. It can pay for a wide variety of nursing, social, and rehabilitative services at home and away from home, for people with a chronic illness or disability or people who just need assistance bathing, eating or dressing. 3
Choosing a DBA. That stands for Daily Benefit Amount - the maximum amount that your LTC plan will pay per day for care in a nursing home facility. You can choose a Daily Benefit Amount when you pay for your LTC coverage, and you can also choose the length of time that you may receive the full DBA on a daily basis. The DBA typically ranges from a few dozen dollars to hundreds of dollars. Some of these plans offer you “inflation protection” at enrollment, meaning that every few years, you will have the chance to buy additional coverage and get compounding - so your pool of money can grow.
The Medicare misconception. Too many people think Medicare will pick up the cost of long term care. Medicare is not long term care insurance. Medicare will only pay for the first 100 days of nursing home care, and only if 1) you are getting skilled care and 2) you go into the nursing home right after a hospital stay of at least 3 days. Medicare also covers limited home visits for skilled care, and some hospice services for the terminally ill. That’s all. 2
Now, Medicaid can actually pay for long term care – if you are destitute. Are you willing to wait until you are broke for a way to fund long term care? Of course not. LTC insurance provides a way to do it.
Why not look into this? You may have heard that LTC insurance is expensive compared with some other forms of policies. But the annual premiums (about as much as you’d spend on a used car from the late 1990s) are nothing compared to real-world LTC costs.4 Ask your insurance advisor or financial advisor about some of the LTC choices you can explore – while many Americans have life, health and disability insurance, that’s not the same thing as long term care coverage.
Citations.
1 genworth.com/content/etc/medialib/genworth_v2/pdf/ltc_cost_of_care.Par.85518.File.dat/Executive%20Summary_gnw.pdf [4/10]
2 - aarp.org/families/caregiving/caring_help/what_does_long_term_care_cost.html [11/11/08]
3 - pbs.org/nbr/site/features/special/article/long-term-care-insurance_SP/ [11/11/08]
4 - longtermcare.gov/LTC/Main_Site/Paying_LTC/Private_Programs/LTC_Insurance/index.aspx [6/25/09]
Wednesday, November 23, 2011
Monday, November 21, 2011
Thanksgiving Holiday
In observance of Thanksgiving, we will be closed on Thursday, November 24th and reopen for normal business hours on Friday, November 25th. Have a wonderful holiday.
Thursday, November 17, 2011
Your Annual Financial To-Do List
Things you can do before and for the New Year.
Presented by Austin Bank Financial Services
The end of the year is a good time to review your personal finances. What are your financial, business or life priorities for 2012? Try to specify the goals you want to accomplish. Think about the consistent investing, saving or budgeting methods you could use to realize them. Also, consider these year-end moves.
Think about adjusting or timing your income and tax deductions. If you earn a lot of money and have the option of postponing a portion of the taxable income you will make in 2011 until 2012, this decision can bring you some tax savings. You might also consider accelerating payment of deductible expenses if you are close to the line on itemized deductions – another way to potentially save some bucks.
Think about putting more in your 401(k) or 403(b). In 2011, you can contribute up to $16,500 per year to these accounts with a $5,500 catch-up contribution also allowed if you are age 50 or older. Has your 2011 contribution reached the annual limit? There is still time to put more into your employer-sponsored retirement plan.1
The IRS has announced 2012 contribution limits for 401(k) and 403(b) accounts, most 457 plans and the federal government’s Thrift Savings Plan (TSP). The annual contribution limit for each of these retirement plans will be $17,000 next year; the catch-up contribution again maxes out at $5,500.1
On a related note, SIMPLE IRA contribution limits won’t change next year. Up to $11,500 can be contributed to a SIMPLE IRA in 2012, $14,000 if you are 50 or older.2
Can you max out your IRA contribution at the start of 2012? If you can do it, do it early - the sooner you make your contribution, the more interest those assets will earn. (If you haven’t yet made your 2011 IRA contribution, you can still do so through April 17, 2012.)
The IRS has decided that IRA contribution limits won’t increase next year. In 2012 you will be able to contribute up to $5,000 to a Roth or traditional IRA if you are age 49 or younger, and up to $6,000 if you are age 50 and older (though your MAGI may affect how much you can put into a Roth IRA).3
The IRS has also boosted the income limits for a tax deduction for traditional IRA contributions. If you participate in a workplace retirement plan in 2012, the MAGI phase-out ranges will be $58,000-68,000 for singles and heads of households and $92,000-112,000 for couples. (In 2011, those phase-out ranges are set $2,000 lower.) If you own an IRA, you aren’t covered by a workplace retirement plan and you are married and filing jointly, the 2012 phase-out range is $173,000-183,000 based on a couple’s combined MAGI, hiked by $4,000 from 2011.3
Should you go Roth between now and the end of 2012? While you can no longer divide the income from a Roth IRA conversion across two years of federal tax returns, converting a traditional IRA into a Roth before 2013 may make sense for another reason: federal taxes might be higher in 2013. Congress extended the Bush-era tax cuts through the end of 2012; that sunset may not be delayed any further.4
Some MAGI phase-out limits affect Roth IRA contributions. These phase-out limits have been adjusted north for 2012. Next year, phase-outs will kick in at $173,000 for joint filers and $110,000 for single filers. (The 2011 phase-outs respectively kick in at $169,000 and $107,000.) Should your MAGI prevent you from contributing to a Roth IRA at all, you still have a chance to contribute to a traditional IRA in 2012 and then roll those IRA assets over into a Roth.3,5
Consult a tax or financial professional before you make any IRA moves. You will want see how it may affect your overall financial picture. The tax consequences of a Roth conversion can get sticky if you own multiple traditional IRAs.
If you are retired and older than 70½, don’t forget an RMD. Retirees over age 70½ must take Required Minimum Distributions from traditional IRAs and 401(k)s by December 31, 2012. Remember that the IRS penalty for failing to take an RMD equals 50% of the RMD amount.6
If you have turned or will turn 70½ in 2011, you can postpone your first IRA RMD until April 1, 2012. The downside of that is that you will have to take two IRA RMDs next year, both taxable events – you will have to make your 2011 tax year withdrawal by April 1, 2012 and your 2012 tax year withdrawal by December 31, 2012.6
Plan your RMDs wisely. If you do so, you may end up limiting or avoiding possible taxes on your Social Security income. Some Social Security recipients don’t know about the “provisional income” rule – if your modified AGI plus 50% of your Social Security benefits surpasses a certain level, then a portion of your Social Security benefits become taxable. For tax year 2011, Social Security benefits start to be taxed at provisional income levels of $32,000 for joint filers and $25,000 for single filers.7
Consider the tax impact of any 2011 transactions. Did you sell any real property this year – or do you plan to before the year ends? Did you start a business? Are you thinking about exercising a stock option? Could any large commissions or bonuses come your way before the end of the year? Did you sell an investment that was held outside of a tax-deferred account? Any of these moves might have a big impact on your taxes.
You may wish to make a charitable gift before New Year’s Day. Make a charitable contribution this year and you can claim the deduction on your 2011 return.
You could make December the “13th month”. Can you make a January mortgage payment in December, or make a lump sum payment on your mortgage balance? If you have a fixed-rate mortgage, a lump sum payment can reduce the home loan amount and the total interest paid on the loan by that much more. In a sense, paying down a debt is almost like getting a risk-free return.
Are you marrying next year, or do you know someone who is? The top of 2012 is a good time to review (and possibly change) beneficiaries to your 401(k) or 403(b) account, your IRA, your insurance policy and other assets. You may want to change beneficiaries in your will. It is also wise to take a look at your insurance coverage. If your last name is changing, you will need a new Social Security card. Lastly, assess your debts and the merits of your existing financial strategies.
Are you returning from active duty? If so, go ahead and check the status of your credit, and the state of any tax and legal proceedings that might have been preempted by your orders. Review the status of your employee health insurance, and revoke any power of attorney you may have granted to another person.
Lastly, have you reviewed your withholding status? It may be time for a withholding adjustment if...
You tend to pay a great deal of income tax annually.
You tend to get a big refund each year from the IRS.
You recently married or divorced.
A family member recently passed away.
You have a new job that pays you much more than your old one.
You opened up your own business or started freelancing.
Don’t delay – get it done. Talk with a qualified financial or tax professional today, so you can focus on being healthy and wealthy in the New Year.
Presented by Austin Bank Financial Services
The end of the year is a good time to review your personal finances. What are your financial, business or life priorities for 2012? Try to specify the goals you want to accomplish. Think about the consistent investing, saving or budgeting methods you could use to realize them. Also, consider these year-end moves.
Think about adjusting or timing your income and tax deductions. If you earn a lot of money and have the option of postponing a portion of the taxable income you will make in 2011 until 2012, this decision can bring you some tax savings. You might also consider accelerating payment of deductible expenses if you are close to the line on itemized deductions – another way to potentially save some bucks.
Think about putting more in your 401(k) or 403(b). In 2011, you can contribute up to $16,500 per year to these accounts with a $5,500 catch-up contribution also allowed if you are age 50 or older. Has your 2011 contribution reached the annual limit? There is still time to put more into your employer-sponsored retirement plan.1
The IRS has announced 2012 contribution limits for 401(k) and 403(b) accounts, most 457 plans and the federal government’s Thrift Savings Plan (TSP). The annual contribution limit for each of these retirement plans will be $17,000 next year; the catch-up contribution again maxes out at $5,500.1
On a related note, SIMPLE IRA contribution limits won’t change next year. Up to $11,500 can be contributed to a SIMPLE IRA in 2012, $14,000 if you are 50 or older.2
Can you max out your IRA contribution at the start of 2012? If you can do it, do it early - the sooner you make your contribution, the more interest those assets will earn. (If you haven’t yet made your 2011 IRA contribution, you can still do so through April 17, 2012.)
The IRS has decided that IRA contribution limits won’t increase next year. In 2012 you will be able to contribute up to $5,000 to a Roth or traditional IRA if you are age 49 or younger, and up to $6,000 if you are age 50 and older (though your MAGI may affect how much you can put into a Roth IRA).3
The IRS has also boosted the income limits for a tax deduction for traditional IRA contributions. If you participate in a workplace retirement plan in 2012, the MAGI phase-out ranges will be $58,000-68,000 for singles and heads of households and $92,000-112,000 for couples. (In 2011, those phase-out ranges are set $2,000 lower.) If you own an IRA, you aren’t covered by a workplace retirement plan and you are married and filing jointly, the 2012 phase-out range is $173,000-183,000 based on a couple’s combined MAGI, hiked by $4,000 from 2011.3
Should you go Roth between now and the end of 2012? While you can no longer divide the income from a Roth IRA conversion across two years of federal tax returns, converting a traditional IRA into a Roth before 2013 may make sense for another reason: federal taxes might be higher in 2013. Congress extended the Bush-era tax cuts through the end of 2012; that sunset may not be delayed any further.4
Some MAGI phase-out limits affect Roth IRA contributions. These phase-out limits have been adjusted north for 2012. Next year, phase-outs will kick in at $173,000 for joint filers and $110,000 for single filers. (The 2011 phase-outs respectively kick in at $169,000 and $107,000.) Should your MAGI prevent you from contributing to a Roth IRA at all, you still have a chance to contribute to a traditional IRA in 2012 and then roll those IRA assets over into a Roth.3,5
Consult a tax or financial professional before you make any IRA moves. You will want see how it may affect your overall financial picture. The tax consequences of a Roth conversion can get sticky if you own multiple traditional IRAs.
If you are retired and older than 70½, don’t forget an RMD. Retirees over age 70½ must take Required Minimum Distributions from traditional IRAs and 401(k)s by December 31, 2012. Remember that the IRS penalty for failing to take an RMD equals 50% of the RMD amount.6
If you have turned or will turn 70½ in 2011, you can postpone your first IRA RMD until April 1, 2012. The downside of that is that you will have to take two IRA RMDs next year, both taxable events – you will have to make your 2011 tax year withdrawal by April 1, 2012 and your 2012 tax year withdrawal by December 31, 2012.6
Plan your RMDs wisely. If you do so, you may end up limiting or avoiding possible taxes on your Social Security income. Some Social Security recipients don’t know about the “provisional income” rule – if your modified AGI plus 50% of your Social Security benefits surpasses a certain level, then a portion of your Social Security benefits become taxable. For tax year 2011, Social Security benefits start to be taxed at provisional income levels of $32,000 for joint filers and $25,000 for single filers.7
Consider the tax impact of any 2011 transactions. Did you sell any real property this year – or do you plan to before the year ends? Did you start a business? Are you thinking about exercising a stock option? Could any large commissions or bonuses come your way before the end of the year? Did you sell an investment that was held outside of a tax-deferred account? Any of these moves might have a big impact on your taxes.
You may wish to make a charitable gift before New Year’s Day. Make a charitable contribution this year and you can claim the deduction on your 2011 return.
You could make December the “13th month”. Can you make a January mortgage payment in December, or make a lump sum payment on your mortgage balance? If you have a fixed-rate mortgage, a lump sum payment can reduce the home loan amount and the total interest paid on the loan by that much more. In a sense, paying down a debt is almost like getting a risk-free return.
Are you marrying next year, or do you know someone who is? The top of 2012 is a good time to review (and possibly change) beneficiaries to your 401(k) or 403(b) account, your IRA, your insurance policy and other assets. You may want to change beneficiaries in your will. It is also wise to take a look at your insurance coverage. If your last name is changing, you will need a new Social Security card. Lastly, assess your debts and the merits of your existing financial strategies.
Are you returning from active duty? If so, go ahead and check the status of your credit, and the state of any tax and legal proceedings that might have been preempted by your orders. Review the status of your employee health insurance, and revoke any power of attorney you may have granted to another person.
Lastly, have you reviewed your withholding status? It may be time for a withholding adjustment if...
You tend to pay a great deal of income tax annually.
You tend to get a big refund each year from the IRS.
You recently married or divorced.
A family member recently passed away.
You have a new job that pays you much more than your old one.
You opened up your own business or started freelancing.
Don’t delay – get it done. Talk with a qualified financial or tax professional today, so you can focus on being healthy and wealthy in the New Year.
Wednesday, April 20, 2011
Jeff Austin III
Jeff Austin III will be interviewed on the Boot Campaign Radio show Thursday, April 21.
Monday, March 21, 2011
Kilgore News Harold Choice Awards
Kilgore News Herald Readers’ Choice Awards for 2011 Best of the Best:
Austin Bank - Kilgore office was voted as the Best Bank and Julie Taylor was voted Best Bank Officer.
Austin Bank - Kilgore office was voted as the Best Bank and Julie Taylor was voted Best Bank Officer.
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