Private Banking

What is the Best Way to Save for College?

January 24, 2020, by Sara McPherson

Written by: Alice B. Womack, Associate Managing Director, Private Banking There are a variety of ways to save for college and the single best way to save is dependent on your financial picture.  Regardless of the savings avenue chosen, the single best advice is to BE CONSISTENT!  Putting money aside early and maximizing the limits available can make a big difference in the amount saved upon your child’s graduation. One of the more popular accounts...

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Why is Prime Rate Important?

January 23, 2020, by Sara McPherson

Written by: Michael Mims, Managing Director, Private banking The Prime Rate or Prime Lending Rate is generally accepted as the interest rate banks charge their best clients.  Prime Lending Rate changes anytime the Federal Open Market Committee (FOMC) changes the Fed Funds Rate (this is the rate banks charge each other for overnight lending reserve requirements).  As a rule of thumb, most banks set their prime rate at three percentage points higher than the federal...

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What is Cash Flow Planning?

, by Sara McPherson

Written by: Michael Mims, Managing Director, Private banking Cash Flow Planning is basically a strategic plan to review anticipated revenues / income and expenses / cash outflows over a defined period of time. Cash Flow Planning can be instrumental in developing a financial plan or family budget. For many clients, this will involve reviewing their anticipated income stream(s) vs. recurring expenses and/or anticipated expenditures such as a new house, vacation home, college expenses, vehicles, investment...

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Let’s Talk About Debt

, by Sara McPherson

Debt is not a bad thing. In fact, it can actually be a good thing if managed properly. By ensuring that your debt is being proactively monitered you can better manage your taxes and ensure your assets are working towards your long term goals.Your advisor can help you implement the proper strategies to meet any exisiting or future banking and credit needs.  

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How do banks make credit decisions?

, by Sara McPherson

Written by: Michael Mims, Managing Director, Private banking Banks are generally on the conservative end of the lending spectrum.  Clients deposit funds into banks for safekeeping, to transact business, and earn a reasonable rate of interest on their funds.  Banks lend these funds out at a spread over their cost of holding the deposits.  This is the primary source of revenue for most banks.  Since Banks are lending client funds, they require reasonable assurance that...

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Understanding Credit Reports

, by Sara McPherson

The three major credit bureaus, Equifax, Experian and Transunion, use these 5 factors  to compile a credit score which banks and creditors will use to determine your eligibility for various types of loan or credit extensions. Number of Accounts/New Credit (10-12%) The Types of Accounts (15%) Revolving (credit cards) Installment (student loans, mortgages, auto loans, etc) Open (American Express) Service (Utilities) Used Credit vs Available Credit (30%) The Length of Your Credit History (5-7%) Your...

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A loss in December could lead to a win in April – Tax-Loss Harvesting

December 11, 2019, by Mac Frasier

When it comes to their portfolio’s investors hate to take losses. But sometimes a loss could be just what the CPA ordered.  As we wrap up another strong year in the stock market many people are starting to think about the tax consequences of all the gains that have realized in the past year.   The good news is that with a few weeks left in the year there are still opportunities to make portfolio changes...

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5 Year-End Tax Planning Strategies

November 22, 2019, by Mac Frasier

The end of the year is quickly approaching. As people turn their attention to holiday shopping and celebrations with friends and family, taxes may be the last thing on their minds. However, implementing one or more of these strategies by the end of the year could make a big difference in April. 1. Max out your retirement plan Review your retirement plans to ensure you have maxed out your contributions for 2019.  For 401(k) and...

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Account Management Options for Persons with Dementia or Diminished Capacity

September 25, 2019, by Mac Frasier

A new diagnosis of Dementia can lead to many questions for both patients and caregivers. After the inquiries about medical care and treatment options the focus generally turns towards the management of a patient’s financial assets. In early stages of dementia that patient may be able to contribute in the planning process and still sign legal documents. In fact, the Alzheimer’s Association states, “As long as the person has the legal capacity (the ability to...

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Planning Checklist for persons recently diagnosed with Dementia

, by Mac Frasier

After receiving a diagnosis of dementia, the thought of all the planning that needs to take place can be a great source of anxiety for both caregiver and patients.  However, getting started with planning sooner can allow the person with dementia to play a more active role in planning for their care.  While there are many things that need to be discussed when it comes to planning, they can really be divided into 3 key...

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