Is It Time For You To Start Planning Your Retirement?

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by Pam Reiss

When should you start planning for retirement?

Assuming you want to stop working one day—and still be able to provide for your family and be comfortable financially—the answer to that question may be yesterday. But the good news is that it’s never too late to start planning for the future.

If you haven’t started preparing for your retirement, rest assured you’re not alone. Believe it or not, more than half of Americans haven’t calculated how much money they’ll need to live comfortably during their elder years. That’s according to the United States Department of Labor (DOL), which also asserts that 30 percent of workers in the private sector don’t participate in a retirement contribution plan, like a 401(k).

According to the Social Security Administration, the average monthly benefit for retired workers was $1,294 in December 2013. Does that sound like enough money to live on? If not, you’re going to need an additional source of revenue to live comfortably during your retirement, which is why you may want to start planning now. With that in mind, let’s look at three steps you can take to invest in your future:

First things first: Make a plan. As with any other goal in life, to be successful in your retirement, you should plan a course of investment. The DOL recommends that you first calculate your net worth, or your assets minus your debts.

Next, you’re going to want to determine your retirement goal. How much money do you anticipate needing to live comfortably each month? Try to figure out a ballpark age around when you might retire. You might be able to work a few years past the age of 65. Heck, you might even want to.

Then, think about how you’re going to invest your money. Do you feel more comfortable buying into a 401(k) plan, or would you rather open a Roth IRA and invest your after-tax money on your own? There are no wrong or right answers; choose what you think will work best for you.

Consider taking advantage of any available retirement plans. Many employers’ generously invest in their employees’ futures. If your company offers such a plan, it’s definitely something you would want to consider.

For example, let’s say your employer matches half of your 401(k) contribution, up to 6 percent. So when you put 6 percent of your salary in your retirement account, your employer tacks on an extra 3 percent. This money is essentially a 3-percent raise to your base salary.

Try not to think about this money. If you touch this money before your retirement, you may have to pay a substantial penalty.

It might be easier said than done, but when you’ve got an account that’s diversified enough, you should set it and forget it. Thanks to compounding interest,  it is possible you may see your $100 per month, for example, grow into quite the sum. If you contribute $100 a month into your 401(k) and it earns 8 percent, that money could grow into more than $150,000 over 30 years.

By not thinking about the money—and thinking about it more as a savings account you can’t access for quite some time—you won’t stress over it. And when you do decide to take a look at how your nest egg is coming along, there’s a good chance you’ll be surprised by the results.

For more information about investing for your retirement, please feel free to contact us.

Three Things You’ll Appreciate When You Walk Into The Milford Bank

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By Lynda Mason

Have you ever gone to a bank where, when you walked in, you’d experience an icy sensation from the stuffy environment; you were likely afraid to touch anything or even make a noise? Many of us have been in that kind of bank, too.

And that’s why we work hard at The Milford Bank to ensure that we provide our customers with an inviting climate every time they come through our doors. In fact, we pride ourselves on creating an environment in which our customers feel comfortable.

Let’s take a look at three things you can expect when you walk into The Milford Bank:

1. A warm welcome. Our employees aren’t typical bankers or salespeople. Rather, we focus on delivering customer service that is unmatched by our competitors. We really try to go above and beyond in making our customers feel at home. As such, our knowledgeable and friendly staff will likely even learn your name.

2. A personal touch. Our staff is encouraged to send out little “thank you” notes to our customers over the course of a week. We also periodically call our customers to ask them how they’re doing. We find that our customers really enjoy our approach to banking. In fact, some of them even pop in just to say hi.

3. No pressure. We understand how important your finances are. If we think one of our customers is missing a product or service that is a good fit for him or her, we’ll talk about it. But, whereas our competitors might push a product, our recommendations are made with a light touch. At the end of the day, we just want to make sure our customers have everything they need. In other words, we won’t hype so-called “products of the week.”

If you’ve not yet experienced The Milford Bank, we encourage you to come into one of our seven locations and say hello. You can also contact us by clicking here.

Getting Through the Holidays on a Budget: Five Tips You Need to Know

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by Cortney Meng

Though we always know when the holiday season falls, it seems as though it approaches faster and faster every year. And with the holidays come a seemingly never-ending list of expenses that includes presents, plane tickets and fancy dinners.

With a finite amount of cash on hand and a stockpile of bills that continues to grow, it can seem quite difficult to enter the New Year without massive amounts of debt.

Don’t sweat it: We’re here to help. Let’s take a look at five tips we hope will help you keep your wallets full this holiday season:

  1. Make a list, and check it twice. When you know exactly how much money you can spend, you’re able to make better informed, more manageable purchasing decisions. Sure, you might want to buy your family and loved ones everything under the sun. But chances are your budget has a ceiling. So consider making a list of who you need to buy presents for and how much money you can spend on each. Worried your list of those you have to give to is getting too long? Why not get a group of family and friends together and opt for a Secret Santa swap instead?
  2. Choose cash over credit. Even though you’re technically spending more or less the same amount of money when you pay for items via cash or credit, it’s a heck of a lot easier to get overwhelmed with debt if you choose plastic as your primary method of payment. By simply withdrawing the amount of money you can spend during the holidays from your savings account, for example, you can be sure that you’re not biting off more than you can chew and instead are living with your means.
  3. Get creative. Maybe you’re an artist. Maybe you’re a handyman. Maybe you’re a poet. Whatever your hobby is, it’s important to keep in mind that you don’t necessarily have to buy the presents you give to your friends and family. If money’s tight, you could very well turn to your own talents and create a gift rather than buying one. Ten years from now, your brother won’t remember the sweater you got him, but he will remember the heartfelt poem you wrote that documents your strong relationship.
  4. Look for coupons and other special deals. There’s certainly no shortage of sales that take place every holiday season. Whether you’re someone who compulsively clips coupons or routinely checks Groupon, if you’re looking to save money as the year winds down, keep your eyes open for any special deals going on. And remember, Black Friday and Cyber Monday sales are actually pretty incredible.
  5. It’s the thought that counts. You don’t necessarily have to buy your friend or family member a Rolex. Oftentimes, smaller gifts can be more impactful, anyway. After all, we all have our collections of trinkets and other charms that carry sentimental value that is truly priceless. So at the end of the day, it’s worth remembering that the thought behind that gift can be more valuable than the gift itself.

The holidays are a stressful time for all of us. But you don’t need to make it any more difficult than it needs to be. By making a serious effort to manage your budget upfront, you can start 2015 off on a financially sound foot!

How to Turn Your Hobby into a Home Business

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by Janet Harrison

If you had all the money in the world, what would you choose to do for work?
That’s the question we’re supposed to ask ourselves to identify what we’d prefer to do for a living. Maybe your response to that question indicates that you’d like to become a photographer, for example, or that you’d like to make jewelry. Identifying your dream job is surely encouraged; there’s a good chance, however, that you’re not quite ready to quit your job and pursue your hobby full time. That’s because you likely don’t have all the money in the world to do so.

But there’s no reason why you shouldn’t at least consider whether the possibility exists that you could make money by turning your hobby into a home business. Sure, you can’t expect that such a business would take off overnight. But who knows? Maybe after a few years, you’ll actually be able to quit your proverbial day job and focus your efforts on making a living while doing something you love.

Before you make a decision, you must ask yourself an important question: Are people willing to pay for what I make?

Prior to launching a home business, you have to be sure that there’s a market for the items you make or the services you offer. Ask your friends how much they’d pay for a bracelet you made, for example. Once you’re comfortable with their responses, it’s time to ask a stranger how much he or she would pay. Satisfied with that answer? It might be time to begin looking into starting a business on the side.

In order to establish your business, you need to be able to prove that you’re trying to make a profit. If you lose money year-after-year and aren’t turning a profit, the IRS could very well view your business as a hobby, limiting your deductions as a result. Here are some tips to help establish your profit motive:

• Create a business plan that clearly defines the fact that you are indeed trying to make money.
• Run your business like a business. That is, keep records of all your expenses and all of your sales.
• Make decisions to increase profits. After all, the goal of a business is to make money, so make sure your actions work toward that goal.

If you begin to realize some level of success, you might want to consider incorporating your business or establishing an LLC so as to reduce your personal liability. In doing so, you’re able to protect your personal assets—like your home, your car and your investment accounts—from creditors.

On top of that, you’ll also appear more serious to those on the outside. The IRS will see that you mean business and might be more inclined to view your operation as a business than a hobby. Customers might think the fact that you’ve incorporated or started an LLC lends you more credence. Additionally, it might be easier for you to get business loans, as banks and other investors might also take you more seriously.

Turning your hobby into a business might be a fun way for you to bring in some extra cash. After that, who knows? The sky could very well be the limit.

What are you thankful for?

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by Jorge Santiago

It’s hard to believe that Thanksgiving is right around the corner. But 2014 has flown by and, sure enough, turkey will be served on dinner tables across the country within a few short weeks.

This is the time of year when we reflect upon our blessings and show our appreciation to our loved ones and to those who really strive to change the world for the better.

Here at The Milford Bank, we welcome the opportunity to say thank you to the members of our communities who strive to help those less fortunate in the Milford and Stratford locales. And that’s why we established The Milford Bank Foundation in 2003: to support charitable, health, public safety and education initiatives in our area.

To show our appreciation for these organizations, we’re pleased to announce that the foundation is currently accepting grant proposals from 501(c)(3) charity groups that serve our Milford and Stratford communities. The grants will range from $250 to $2,500 for the year ending Dec. 31, 2014. Please keep in mind that submissions must be made by Nov. 15. (Click here for more information and to obtain the Grant Application.)

While it’s important to support our neighbors year round, we particularly enjoy celebrating the spirit of giving at this time of year when the focus is on gratitude for each other and the world in which we live. That’s why we’re excited to be able to offer these grants through our foundation.

If you’re interested in applying for one of the grants, please click here to download the application. From our family here at The Milford Bank to you and yours, a very Happy Thanksgiving!

A Friendly Reminder From The Milford Bank: Beware of the ‘Grandparent Scam’

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By Bob Russo

The scam usually goes something like this: You receive a phone call from someone claiming to be your grandchild. Or perhaps the caller is claiming to be someone contacting you on your grandchild’s behalf— like a police officer, for example, who says he/she has just arrested your grandchild and is requesting bail money for his or her release.

No matter what story line the culprits employ in this “grandparent scam,” the call always ends up with the scammer asking for money.

Countless times, this scenario—in which a criminal takes advantage of a typical grandparent’s concern for a grandchild—is being perpetrated against senior citizens, and many of them are becoming victims. They choose to immediately wire the money, usually through Western Union, to anywhere in the world that the caller dictates. In other words, they’ll do whatever the caller tells them to do to help their grandchild.

Unfortunately, once money is wired internationally, it’s very hard—if not impossible—to get it back.

Earlier this year, two nurses in Ridgefield, Connecticut, prevented an elderly couple from wiring $2,800 to a scammer—a caller that pretended to be their grandson. In this iteration of the scam, the grandson was injured while on vacation in Colombia and needed money.

The caller also instructed the grandparents to not contact any other family members. Should a similar situation arise—with someone on the phone saying they’re your grandchild and asking for money—do call a member of your family immediately to corroborate what you’ve been told.

With a call like this from out of the blue, there’s a good chance something is amiss.

We understand that our customers are so much more than their savings and checking accounts with us. We hope to be your trusted advisor. So, from time to time, expect that we’ll provide updates on these kinds of scams to make sure you’re aware of them and to keep you from becoming a victim.

Just a Local Bank? Think Again. With The Milford Bank, You Can Enjoy Free ATM Withdrawals at 55,000 ATMs Across the Globe!

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By Cortney Meng

You might think that when you open a savings account or a checking account at The Milford Bank, you’ll have to do all of your banking—including free ATM transactions—within the limits of Milford and Stratford. Not so!

While it may be true that our seven branch locations are contained within those two towns, we figured now is as good a time as any to inform you, or remind you, that when you open a savings account or checking account at The Milford Bank, you’ll have access to 55,000 surcharge-free ATMs located across the United States, Canada, Australia, Mexico, Puerto Rico and the United Kingdom.

That’s because The Milford Bank is part of Allpoint, the world’s largest surcharge-free ATM network. That means you can use member ATMs just as you’d use any of the machines located at all of our branches—with no hidden costs.
Usually found at places like CVS, Costco, 7-Eleven and Walgreen’s, there’s a good chance you won’t have trouble spotting these surcharge-free ATMs. In fact, you might even pass by them on a regular basis and not even know it.
Worried you won’t be able to find the appropriate ATM? Not a problem. You can download this app that leverages a geo-locator to help you find the machine that’s nearest you.

We don’t charge a fee when you use any ATM, but look out for other banks’ ATMs that may very well tack on surcharges when you are not a customer and use theirs.

Thanks to the Allpoint Network, though, you won’t have to worry about freely accessing your money. We know that’s the way you like it, and we’ll keep it that way.

Survey Shows More Customers Opting to Bank at Branches and on Mobile Devices in 2014

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by Celeste Lohrenz

How do you prefer to do your banking?

According to a recent survey by the American Bankers Association, most Americans (31 percent) prefer to do their banking online. Surprisingly, that represents an 8 percent decrease from 2013. Additionally, this year, more customers prefer doing their banking at a branch (21 percent) than they did last year (18 percent). Other banking preferences include:

  • ATMs – 14 percent (up from 11 percent)
  • Mobile – 10 percent (up from 8 percent)
  • Telephone – 7 percent (no change)
  • Mail – 6 percent (down from 7 percent)

We love it when our customers come in to one of our branches to say hello or conduct their banking business. Our staff is always excited to see friendly faces, engage in good conversation and help answer any questions our customers might have. As such, it’s encouraging to see that more people prefer to do their banking at brick-and-mortar locations this year than they did last year.

But we also understand that in today’s digital world, not everyone has time to drive to the bank for routine financial transactions. While it’s likely you’ve conducted some of your banking business online before, have you ever given mobile banking a try?

At The Milford Bank, we are proud to offer mobile banking options. With our mobile deposit tool, you are able to deposit money into your savings account, for example, no matter where you happen to be—so long as you have a mobile device handy. You can read more about our mobile deposit program here.

In addition to that, we’re pleased to offer Popmoney, a peer-to-peer payment service that lets you send money to friends, family and whoever else from your mobile device. This is perfect for sending your kids money at college or paying your brother back the couple hundred bucks you owe him. Interested in learning more about Popmoney? Stop by or call us. We’re here to help you find the financial services that work best for your needs.

What Do You Know About Defunct U.S. Currencies? – Part Two

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By Pam Reiss

Earlier this year, we published a popular blog post that explored some of the older United States currencies that are no longer in circulation. Fresh off the success of that piece, we decided it made sense to similarly explore some of the coin-related numismatic history of our country.

Believe it or not, paper money, as we know it today—that which doesn’t accumulate interest and can be exchanged between common folk for goods and services—wasn’t printed until 1861. Prior to that, commerce was generally dictated by the exchange of coins.

For the most part, we’ve reduced the coins that circulate today to little more than an inconvenience. After all, who wants to carry around all that change, anyway? But prior to pennies, nickels, dimes, quarters, half-dollars and dollar coins, our ancestors traded a slew of coins that have since become obsolete.

Some of those include the:

• Half-cent. Minted between 1793 and 1857, the half-cent is the smallest denomination of currency that ever circulated in the United States. The coin went through five different iterations during its lifetime. In today’s economy, the value of the coin would be roughly 12 cents, according to the Consumer Price Index.

• Large cent. Bearing a face value of 1 cent, large cents were composed of about twice the amount of copper that could be found in a half-cent. This coin enjoyed the same lifespan as the half-cent, and went through eight different designs during that period. These coins were bigger—and heavier—than today’s quarters.

• Two-cent piece. Created in response to the economic turmoil that resulted from the Civil War—people hoarded money because of the uncertainty of the times—the two-cent piece bore the same dimensions of today’s pennies. Minted between 1864 and 1873, the coin eventually was discontinued due to the rise of the three-cent piece and the nickel.

• Three-cent piece. Weighing eight-tenths of a gram, the three-cent piece was the lightest coin ever minted in the United States. The coin’s lifespan can be divided into two sections. From 1851 to 1873, the coin was minted in silver. From 1865 to 1889, the coin was minted in nickel. During the overlap period, less silver coins were minted while nickel production increased. The coin actually has an interesting reason behind its creation: In 1851, the postage rate dropped from five cents to three cents. This was the solution.

• Half-dime. Most scholars agree that the half-dime was first minted in 1794. These coins were roughly half the thickness and size of dimes, hence the name. As the copper-nickel five-cent piece was introduced in 1866, the need for a silver coin bearing the same denomination was no longer necessary. As a result, these coins were discontinued in 1873.

• Twenty-cent piece. Bearing a remarkably similar design to the quarter-dollar, and thus often mistaken for it, the 20-cent piece was only minted for three years, between 1875 and 1878. The coin, which was originally proposed in 1791, was designed to help a perceived coin shortage in the western half of the country. Either way, the coin didn’t have much utility and was phased out shortly after its release.

But the list of obsolete coins doesn’t end there. So stay tuned, because we’ll touch upon them in future posts!

Meet Teller Lisa Richetelli (if You Haven’t Already)

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By Jorge Santiago

“I go out of my way to take care of who’s in front of me. I love all of our customers.”

So says teller Lisa Richetelli, a familiar face at our Broad Street branch for the last 14 years. While many of our customers certainly know Lisa, some might not know that she’s married to another well-known local: Her husband James served as Milford’s ninth mayor from 2001 to 2011. Both spouses revel in their Milford citizenry and were happy to raise their children here among friends, while enjoying the town’s many amenities, like the beautiful seashore.

Lisa finds job satisfaction at The Milford Bank even in everyday simple efforts to assist customers. For example, she described a recent experience helping an elderly woman learn how to operate the bank’s ATM machine. “By the time she left, she was in great spirits,” Lisa recounted. For her, it’s important that every customer who comes through the door has a good banking experience.

After Lisa graduated high school, she worked at The Milford Bank for about a decade before leaving to raise her three children. She returned to her “home away from home” fourteen years ago in a part-time capacity, saying that she couldn’t imagine working anywhere else. “It’s a hometown bank, so people will talk about what’s going on,” she said. “Most of us live in Milford or are from around here, so the bank has a really community-oriented feel.”

Lisa said she looks forward to seeing whoever walks up to her counter. Even though there are customers she knows better than others, she tries to treat everyone the same. “We know most of our customers,” Lisa explained, “and we make it a point to get to know the customers we don’t know.”

The Milford Bank strives to hire tellers who will be courteous, friendly and helpful at all times, and Lisa perfectly embodies those characteristics.

Please stop by our Broad Street branch and say hello!